June 2 (SeeNews) - Bulgaria's Elana Agrocredit [BUL:EAC] said that it has signed a credit agreement with the European Bank for Reconstruction and Development (EBRD), paving the way for the receipt of a loan amounting to up to 10 million euro ($10.8 million).
The five-year loan will be made available in two traches of up to 5 million euro each, Elana Agrocredit said in a bourse filing on Thursday.
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The first tranche has a coupon rate of 3.25% plus Euribor. The coupon rate for the second tranche will be determined by the parties once the remaining part of the loan is absorbed.
The financing will be used to support the company's operations until the end of the current year and during the first six months of 2024. The EBRD announced in March it will lend the funds to allow the Bulgarian agricultural lease financing provider to increase lending to micro-, small and medium-sized enterprises (MSMEs) in the farming sector affected directly or indirectly by the war in Ukraine.
The contract with the EBRD was signed after the Bulgarian company received the go-ahead from its shareholders at a general meeting held earlier this week. It is secured by receivables due under the leasing contracts concluded by the company.
($ = 0.9288 euro)