EximBank financed Agricover Group with 70 Mil Lei
Bucharest, April, 23 2013 – EximBank and Agricover Group – one of the leading players in agri-business have concluded a financing agreement for financing Agricover Group/ Agricover Credit IFN with 70 Mil Lei (more than 15,5 Mil Euro) to ensure the necessary resources for business development.
”Agriculture is one of the actual priorities and EximBank is able to be an important partner in supporting projects that contribute to the increase of competitiveness in this field. The partnership with Agricover completes the technic competencies of EximBank with Agricover Credit IFN mobile sales team that holds the financial expertise as related to the farmers. Our agreement allows a direct significant financing of the local farmers with highest efficiency rate. EximBank is able to multiply this financing model, that encourages the business consolidation in Romanian agriculture, in other economic fields because, even if we are still seen as a bank dedicated to exporters, at present our product portfolio allows supporting any type of company, SMEs or big companies, active internationally or only on internal markets”, declared Traian Halalai, President of EximBank.
Agricover Group is an agricultural development hub acting as an integrator between farmers and the food processors companies. The Group has more than 3000 farmer clients – owning almost one fifth of the total plough land available in Romania and almost 110 clients in the food processing industry – from crushing mills to bread manufacturing to fodder and meat processing.
”Agricover is promoting a business model based on the value chain management – agricultural production- trading- agricultural products processing. Moreover, Agricover Credit IFN is supporting the farming development by granting to the farmers what they need most at this time – financing for working capital and investments ensuring through group synergies the key factors for obtaining a profitable agricultural cycle. Having EximBank as a partner we will be able to continue developing products and innovative financial services, offering complete, integrated solutions both to the farmers and the food industry” declared Robert Rekkers, General Manager of Agricover Credit IFN.
As future plans, the Group intends to expand its operations outside Romania by developing a division already active in Bulgaria and openings in neighboring countries.
”We do hope to extent our collaboration with Agricover, especially Agricover Credit IFN in terms of expanding their operations, aiming at becoming a regional player based in Romania, taking into account that we hold the special financial instruments that ensure the success of such processes in highly safe conditions”, added President of EximBank.
EximBank offers to Romanian companies a threefold product portfolio focused on financing, guarantee and insurance that allows the bank to support the activity and development of the Romanian exporters and companies active in priority economic domains, including the ones contributing to the absorption of EU funds.
The financing package offered by the bank consists in standard financing for current activity or investments and specific products under the state aid category: subsidized interest rate loans and partial compensation of the interest rate.
State guarantees offered by EximBank support the companies that need financing but cannot present enough collateral guarantees also being able to take over a significant part of the credit risk.
In terms of insurance, EximBank covers the commercial and political risks that might be incurred by the international commercial transactions or by the investments activities of the Romanian companies abroad.
The bank has a network of 12 entities in Bucharest, Bacau, Brasov, Constanta, Cluj, Craiova, Timisoara, Buzau, Oradea, Deva, Iasi and Sibiu; also, interested companies may access additional information on www.eximbank.ro