According to the agreement, the EBRD will invest RON 32 million ($8.278 million) in the company’s capital for a subscription to a 13% stake. The completion of the transaction is subject to statutory approvals and is expected to be finalized before the end of 2017.
Agricover Holding SA is a major player in the Romanian agricultural sector, offering agribusiness and financial services to farmers through an integrated and original business model centered around satisfying the essential needs of farmers. With 17 years of experience in Romanian agriculture and 850 employees, the company supports more than 4,500 farmers through its two main subsidiaries Agricover SRL and Agricover Credit IFN. In 2016, the firm reported a turnover of RON 1.2 billion and provided RON 1 billion in financing.
“We are joining forces with the EBRD to accelerate our support for the development of modern agriculture in Romania,” Jabbar Kanani, President of Agricover Holding SA. “Together with the Bank we will continue to provide farmers with innovative solutions designed to enhance the performance of their farming activities.”
The EBRD’s investment will support the growth of one of the locally owned Romanian companies serving farmers in all agricultural sectors. The funding will allow the firm to meet the growing financing needs of local farmers and will ensure that a larger number of small and medium-sized farms will gain access to modern technologies and markets. The company will continue to provide support to farmers working in animal husbandry and to develop its recent investment in the pork-processing business.
“We have been following Agricover’s development with great interest over the past few years,” Miljan Zdrale, EBRD Regional Head for Agribusiness in Central and Southeastern Europe. “The company has developed a unique structure that has proven to be resilient to the risks inherent in the agribusiness sector. We hope that with our support it can become a role model for other countries where primary agriculture is an important part of the economy.”