The European Bank for Reconstruction and Development (EBRD) plans to extend, pending approval on July 21, two loans in the total amount of EUR 54 mln to companies in Al Dahra group of companies, a leading global agribusiness player headquartered in Abu Dhabi, United Arab Emirates.

One of the loans, in the amount of EUR 20 mln, would be extended to Agricost to finance new storage facilities needed in the context of rising alfalfa production volumes over the next five years.

Furthermore, increased storage will enable Al Dahra to better position itself on the global alfalfa market during the low supply winter period.

Agricost manages ca 57,000 ha crop farm located in the Great Island of Braila, and is involved in the production of cereals (wheat, maize, and barley), oilseeds (sunflower and soy), and alfalfa.

The other loan considered by EBRD is dedicated to Al Dahra Serbia (ADS), a vertically integrated agribusiness company with operations near Belgrade, Serbia.

In contrast to the Romanian subsidiary of Al Dahra, ADS is a vertically integrated agribusiness company involved in primary agriculture activities, livestock, and dairy farming.

Proceeds from the loan will enable ADS to finance investments in crop farming improvements, a new alfalfa factory, an animal feed factory, and the modernization of its dairy farm operations.

(Photo: Shutterstock)

andrei@romania-insider.com