Premium
A financing agreement worth 28.8 million euros was concluded between EximBank and Agricost SA - the administrator of the farm holding on the Big Island of Braila, the largest integrated farm system in the European Union (EU), with the purpose of acquiring high-performance agricultural equipment and expanding the irrigation structure in this area, EximBank announced in a release issued on Monday for AGERPRES.
In 2018, Agricost was taken over by the Al Dahra group in the United Arab Emirates, an entity that has set as a strategic objective the maximization of yields per hectare, the optimization of production and processing costs, as well as the increase in the cultivated land area, the development of the irrigation system, of the agricultural equipment park and of the logistical infrastructure, assuming an extensive investment program for the next four years.
"By signing this agreement with Agricost - one of the biggest players in the agricultural field at national and even at European level, EximBank continues to evolve towards consolidating the position of important corporate financier, having as main asset the ability to structure smart financial solutions for partners. We are convinced that this partnership - built on EximBank's ability to provide products and services that are not only at a high quality standard, but that are also cost-competitive, and the potential of Agricost to implement sustainable projects, with direct and positive impact at the micro and macro-economic level - will contribute consistently to the strengthening of the Romanian agribusiness," said Traian Halalai, the executive president of EximBank.
Khadim Al Derei, Vice President and co-founder of Al Dahra, mentioned that the Group's investment plans in the agricultural field in Romania will continue.
"These are investments that will bring future benefits for Romanian farmers, create new jobs and improve the access of Romanian products to international markets, which will lead to the creation of a long-term stability in the agricultural production area for Romania," said the company official.
EximBank is a specialized institution that is actively involved in supporting and promoting the Romanian business environment. At the end of 2018, the bank administered total exposures of 8 billion lei, an increase of 30pct compared to 2017, and registered a profit of 113.5 million lei.
Agricost owns and manages the largest agricultural holding in Europe, located on the Big Island of Braila in Romania, at 160 km from Bucharest and 130 km from Constanta Port. The farm on the Big Island of Braila is managed through 29 interconnected vegetable farms, which make up a compact agricultural area with an area of 56,000 hectares of fertile agricultural land, with free access to the Danube. The farm produces over 500,000 tonnes of cereals annually, consisting of various autumn and summer crops, such as: wheat, barley, soy, sunflower and corn.
