Romanian farming holding Holde Agri Invest is preparing loans and leasing contracts totaling over EUR 38 mln to finance its working capital, the purchase of agricultural equipment and land, and the expansion of its storage capacity, Profit.ro reported.
Nine companies will raise the money under the holding's umbrella: Holde Agri Operational, Inter Muntenia, Agro Antran, Agro Sargadillo, Ronosca, Benasque, Bigmed, Agromixt Buciumeni, and Capriciu de Licuriciu Farm. Holde Agri Invest is also preparing to contract a loan of up to RON 11 million (EUR 2.2 mln) to purchase a new farm.
The company currently operates 7,000 hectares of land but plans to reach 10,000 hectares by the end of this year.
Holde Agri Invest expects to float its shares on the AeRO market of the Bucharest Stock Exchange (BVB) in September 2020 and will focus in the next period on meeting the official requirements for listing. Holde will be the first company listed on BVB to operate agricultural land.
The company's shares will be available for trading under the HAI symbol. Following the listing, Holde will continue to actively use the capital market's various financing mechanisms to develop its business.
One of the strategies already envisaged by the management is the acquisition of companies, and the expansion of arable land through share swaps and capital increases through in-kind contributions.
Holde's goal is to become one of the most important Romanian players on the local agricultural market, reaching a minimum of 20,000 hectares of land in the next seven years. To achieve this, Holde will invest over EUR 50 mln in land acquisitions, new equipment, storage space, and modern irrigation systems.