Agricover Holding, a Romanian group that provides services to local farmers, successfully carried out its first bond issue of €40mn, the company said on February 1. 

The bond, which coincides with 20 years since Agricover launched its operations in Romania’s agricultural market, will be listed on the regulated market of the Bucharest Stock Exchange (BVB) in the near future, the company said on its Facebook page. 

“We are honoured by the interest generated by this first bond issue, especially among individuals and institutional investors, and we are enthusiastic about the opportunity created, to put in contact through BVB, the financial community with farmers in Romania, to build together a high-performing, competitive and responsible Romanian agriculture towards the environment,” said Ștefan Bucătaru, member of Agricover Holding’s board of directors responsible for operations on the capital markets.

Agricover Holding Group is controlled by Iranian businessman Jabbar Kanani (87.2%), a major player in the local agricultural market, while the European Bank for Reconstruction and Development (EBRD) holds a 12.7% minority stake. The EBRD has also issued loans to the company. 

The group includes the companies Agricover, Agricover Credit IFN and Abatorul Peris. The agri-business division comprises mature business lines: distribution of inputs (seeds, pesticides, fertilisers and diesel), grain trade, silage services, milk recovery; and the group's new businesses: distribution of fresh vegetables and fruits and pork processing. The agri-finance division includes financing and specialised insurance services for agriculture.