Agricover Holding S.A. takes its first step on the Bucharest Stock Exchange by listing the largest bond issue of a Romanian entrepreneurial company on the BVB

Radu Hanga, President of Bucharest Stock Exchange:

"We are delighted with the success of the bond issue carried out by Agricover Holding S.A. both because we are talking about the largest bond issue carried out by an entrepreneurial company on the BVB, but especially because the money attracted from investors will be directed towards supporting the development of Romanian agriculture. The pandemic has shown us that, in times of tension and uncertainty, we have to rely first and foremost on our own strengths, so it is only natural that the capital market should also support Romanian companies."

Ioana Tănase, Director Investment Banking, BCR:

"Over the years, BCR has supported the group's development through financing and it is only natural that we should also support Agricover Group on the occasion of their first step into the capital market. Today we have clear proof that a solid company will always attract the interest of investors. We are proud that this model has been provided by Agricover, with whom we have a long history of partnership in business. Last but not least, Romania needs to move quickly towards sustainable development and BCR is ready to support its clients in these initiatives as well."

Irina Neacșu, Executive Director Corporate Finance, BRD Groupe Societe Generale:

"Agricover is undoubtedly one of the most representative entrepreneurial business groups in Romania, growing profitably at a fast pace and holding prominent positions in all its business segments. The attractiveness of the agricultural sector and the issuer was confirmed by institutional and private banking investors who oversubscribed the bond offer, thus becoming the new partners of Agricover Group's future growth. Also in view of our experience as an intermediary of the offer, we are convinced that the bond issue is only a first step for the Agricover Group on the Bucharest Stock Exchange."

Ștefan Bucătaru, Member of the Board of Directors of Agricover Holding S.A.:

"We are very pleased with the opportunity to create a bridge between as many and as diverse investors as possible on the capital market and Romanian agriculture. Agricover Group, through Agricover Credit IFN S.A., Agricover S.A. and Agricover Technology S.R.L., has made it a business strategy to facilitate the access of Romanian farmers both to the most advanced agricultural technologies and to financing solutions adapted to the specific agricultural sector, so that as many Romanian farmers as possible can develop successful businesses in optimal conditions. We want to offer Romanian investors the opportunity to join us in this endeavour, so that together we can effectively contribute to the modernisation of Romanian farms on a professional, competitive and sustainable basis."

Adrian Tănase, General Manager, Bucharest Stock Exchange:

"The successful financing rounds carried out at the BVB demonstrate that there are more financiers, individuals and institutional investors on the stock exchange. These resources can come from deposits, pension funds and mutual funds. In recent years we have seen companies from various sectors come to the stock exchange, agriculture, energy, medical, HoReCa, IT, banking and non-banking finance. At the same time, this year we will see new companies listed on the Bucharest Stock Exchange from various sectors of the economy, with more than 20 companies in various stages of preparation, according to public information alone." 

The bonds issued by Agricover Holding S.A. in the amount of €40 million are unsecured, with the nominal value of one bond being €50,000 and a coupon rate of 3.5%. The issue was conducted through a private placement on the BVB closed in January 2021, which was oversubscribed and enjoyed a diversified audience, both among institutional investors (open-ended investment funds, commercial banks, international financial institutions) as well as among private banking investors.

The capital raised through the bond issue is intended to finance the lending operations of Agricover Credit IFN SA, a subsidiary of Agricover Holding S.A., specialising exclusively in financing farmers in Romania. Including through the funds raised through the bond issue, the non-bank financial institution aims to maintain the fast pace of lending to Romanian farmers and to further contribute to the sustained, sustainable growth of local agricultural performance.

More information is available in the Prospectus prepared for admission to trading and published on the agricover.ro website or on the BVB website.

We invite you to watch the launch event tomorrow, 31 March 2021, at 10:00 a.m., on Agricover and BVB communication channels, at the BVB headquarters. The agenda is available here.

Agricover Holding S.A. is a holding company and represents the vehicle through which the four entities of the group are held, namely Agricover S.A. (specialized in the distribution of agricultural technologies), Agricover Credit IFN S.A. (non-banking financial institution specialized in financing farmers), Abatorul Periș S.A. (specialising in pig slaughtering and pork processing) and Agricover Technology S.R.L. (through which the Group intends, from 2022, to provide farmers with access to the latest innovations in global agriculture and, in practice, facilitate a transformation in the way they do business through access to digital technologies).

Since its establishment, Agricover Group has aimed to serve Romanian farmers and provide them with innovative solutions tailored to their needs, so that they can systematically and sustainably strengthen their productivity through access to high-performance agricultural technologies and financing solutions tailored to the specific agricultural sector. The Group has made a direct contribution to the very good performance of Romanian farmers, who, in the last decade, have steadily increased their average productivity per hectare for cereal and oilseed crops, recording in 2017-2019 a level that represents 93% of the European Union average, respectively 75% of the productivity recorded in France, 77% of the productivity recorded in Germany and exceeding by 19% the average yield of farmers in Poland.

Currently, more than 1,000 employees work in Agricover Holding S.A. subsidiaries. The Group serves a portfolio of more than 6,000 active farmer customers, who farm more than 2.2 million hectares of arable land nationwide.

The majority shareholder of Agricover Holding is Jabbar Kanani, with a stake of 87.269% of the subscribed and paid-up share capital. Another major shareholder is the European Bank for Reconstruction and Development (EBRD), which holds 12.727% of Agricover Holding's shares. Adama Agriculture B.V., a member of the Syngenta Group, one of the world's largest producers of plant protection products and certified seeds, holds 10.000% of the shares in Agricover S.A..

Agricover Holding S.A. ended 2019 with consolidated revenues of more than RON 1.65 billion (an increase of more than 25% compared to 2018), while the balance of net loans granted to farmers by its specialised subsidiary Agricover Credit IFN S.A. as at 30 June 2020 was RON 1.832 billion, 22% higher than the level recorded as at 31 December 2019.

The BUCHAREST STOCK EXCHANGE (BVB) administers markets for shares, bonds and other financial instruments through regulated platforms or multilateral trading facilities and provides a wide range of services to financial market participants. Bursa de Valori București has been listed on its own market since 2010. Global index provider FTSE Russell announced in September 2019 the promotion of the Romanian equity market to Emerging Secondary Market status. As of 21 September 2020, Romania is included in the FTSE Russell Emerging Markets Indexes. For more information about the Bucharest Stock Exchange, visit bvb.ro.

For more information, do not hesitate to contact:

Ștefan Musgociu, BVB Business Development and Marketing Specialist, +40.730.255.030, stefan.musgociu@bvb.ro

Carmen Chioțea, Marketing Director Agricover Group, +40.749.888.885, carmen.chiotea@agricover.ro

PRESS RELEASE
30 MARCH 2021, Bucharest