Agricover Holding, a Romanian group that provides services to local farmers, will issue EUR 40 million worth of bonds under a private placement, Profit.ro reported.

The company will later float the papers at Bucharest Stock Exchange (BVB). The company's shareholders endorsed the move.

The bonds will have a maturity of 7 years and a nominal value of EUR 50,000 or EUR 250,000 (to be decided by the managing board), making them inaccessible to small individual investors.

The company's managing board will decide the yield upon the book-building process.

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

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andrei@romania-insider.com