October 13 (SeeNews) - The European Bank for Reconstruction and Development (EBRD) said on Friday it will invest 32 million lei ($8.2 million/ 7 million euro) to subscribe for a 13% stake in Romanian agribusiness company Agricover Holding.
The completion of the transaction is subject to statutory approvals and is expected to be finalised before the end of 2017, the EBRD said in a press release following the signing of an agreement confirming the bank‘s intention to become a shareholder in the Romanian company.
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The funding will allow Agricover Holding 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.
"Small and medium-sized farms are a driving force of Romania’s agriculture," EBRD regional director for Romania and Bulgaria, Matteo Patrone, said in the statement.
Agricover will continue to provide support to farmers working in animal husbandry and to develop its recent investment in the pork-processing business.
"We are joining forces with the EBRD to accelerate our support for the development of modern agriculture in Romania. Together with the bank we will continue to provide farmers with innovative solutions designed to enhance the performance of their farming activities," Agricover Holding president Jabbar Kanani said.
Agricover Holding is a major player in the Romanian agricultural sector, offering agribusiness and financial services to 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 and Agricover Credit. In 2016, the company reported a turnover of 1.2 billion lei and provided 1 billion lei in financing.
Total investment in agribusiness accounted for 10.3 billion euro in 624 projects across the EBRD’s countries of operations, of which 700 million euro for 36 projects was invested in Romania.
(1 euro=4.5889 lei)