EximBank finances Agricost investments in the largest agricultural farm in the EU
Bucharest, September 30 2019 – EximBank and Agricost SA, the administrator of the Great Braila Island agricultural area considered as the largest consolidated farm in Europe, have concluded a financing agreement with a total value of 28.8 million Euros.
The new facility aims to support Agricost’s ongoing growth investments over the coming few years. The key investment projects include, amongst other, the acquisition of high performance agricultural equipment and the expansion of the irrigation infrastructure system in the Southern part of the Great Braila Island.
”Concluding this agreement with Agricost – one of the top players in agriculture in Romania and even Europe – is a step forward for EximBank in consolidating its positioning as an important corporate financing source, having as main advantage the ability to structure smart financial solutions for its partners. We are convinced that this partnership, founded on EximBank’s capability of offering not only high quality products and services but also competitive in terms of pricing and the Agricost’s potential in implementing sustainable projects with direct positive impact on micro and macro-economic levels, will contribute consistently to the consolidation of the Romanian agro-business” said Traian Halalai, Executive President of EximBank.
Mirela Bibicu, Southern Eastern Region Director and EximBank Galati Agency Coordinator added, “It is an honor to be selected as financial partner of Agricost considering that it operates almost 57.000 hectares of land in Insula Mare, Braila and offers approximately 5% of the total Romanian cereal production”.
Agricost has been acquired by the United Arab Emirates – based Al Dahra group in 2018. Al Dahra, a prominent leader in the agricultural sector, aims to maximize the yield per hectare, to optimize the farming and processing costs and to extensively develop the land, irrigation systems, agricultural machinery and logistical infrastructure through a series of investments planned over the next four years.
His Excellency Khadim Al Darei, Vice Chairman and Co-Founder of Al Dahra commented by saying: “we are determined to carry on investing in the agricultural sector in Romania as we strongly believe that through investments in technology and innovation, we improve efficiency and productivity and maximize yield output. Such investments will bring further benefits to Romanian farmers, create new job opportunities and improve the access of Romanian products to international markets, hence creating long-term stability for agricultural production in Romania ”.
About EximBank
EximBank is a specialized institution actively involved in supporting and promoting the Romanian business environment. Its specific financial instruments are exclusively targeted to the corporate segment and may be accessed in advantageous conditions by any type of company, either SME or big company, involved in international transactions or solely active on local market. The companies benefit from a competitive portfolio of treasury, cash management, trade finance and factoring products, that come to add up to the financing and guaranteeing offer. In addition, acting as a state agent on the Romanian market of guarantees and insurance, EximBank is the main channel for the public funds made available by the state to be disposed in the real economy. At the end of 2018, the bank had total exposures amounting at 8.0 billion Lei, 30% higher than at the end of 2017, with profits of 113.5 million Lei.
About Agricost SA
Agricost SA owns and operates the largest consolidated farm in Europe, situated in Braila Island in Romania, 160Km away from Bucharest and 130Km away from Constanta port. Braila Island consists of 29 adjacent farms, connecting to form a remarkable compacted area spreading over 56 thousand hectares of cultivable, fertile land with access to the Danube River from all sides. The farm has deep alluvial soils which lends itself to growing various combinable and fodder crops. Furthermore, the farms’ irrigation infrastructure has been very well developed over the years with 6 water pumps and 2,300Km of water pipes installed to facilitate water supply to the different parts of the island, using the latest technologies. The farming conglomeration produces more than 500 thousand metric tons, annually, of various types of winter and summer crop varieties, such as wheat, barley, soya beans, sunflowers and corn.
About Al Dahra
Al Dahra is a prominent multinational leader in agribusiness, specializing in the cultivation, production and trading of animal feed and essential food commodities and end-to-end supply chain management. Serving a large customer base spanning the Government and Commercial sectors, Al Dahra has a widespread geographic footprint, operating in over 20 countries and catering to more than 45 markets, with a leading position in Asia and the Middle East. The group manages and operates a land bank in excess of 350 thousand acres of land with 800 pivots and a fleet comprising more than 900 farming assets. In addition, the company owns and manages 15 state-of-the-art forage processing and baling facilities and has the capacity to produce and supply 3 million metric tons of alfalfa and grasses annually, catering for the needs of the dairy and cattle industries. It is also a leading player in the production, packaging, marketing and distribution of grains, operating 3 rice mills and 2 flour mills with the capacity to produce 500,000 tons of flour and 500,000 tons of rice, annually. It further owns and operates a grains hub strategically located at the Fujairah port in UAE with 20 silos and more than 300,000 metric tons storage capacity. Al Dahra has also made considerable investments within the logistics and supply chain sector. It moves about 2 million metric tons, annually and ships 175 thousand TEUs. For more information: http://www.aldahra.com/