RSS
EBRD: Romania Agricover Credit IFN 20m loan under RLF
Project Description
EUR 20 million unsecured multicurrency (EUR or RON) loan (the 'Project') in two equal tranches (the first one committed and the second one uncommitted) to Agricover Credit IFN SA ('ACIFN') under the Resilience and Livelihoods Framework ('RLF').
Project Objectives
The project will help ACIFN to increase lending to farmers (MSMEs) affected directly or indirectly by the war, thereby supporting food production and security in Romania and elsewhere.
Transition Impact
ETI score: 65
ETI 65
The project aims to support ACIFN to i) fortify its lending capacity while remaining robust and operational ('Resilient') and ii) continue lending to farmers (MSMEs) affected directly or indirectly by the war ('Inclusive').
Client Information
AGRICOVER CREDIT IFN SA
ACIFN is an existing EBRD client. The company was established in Romania in June 2008 as a non-banking financial institution specialised in financing of the local agricultural sector. The major shareholder of ACIFN is Agricover Holding SA (99.999%; the Group), a leading player in the Romanian agricultural sector. The Group is ultimately controlled by its founder, Mr. Jabbar Kanani. In late 2017, EBRD injected RON 32 million (EUR 7 million equivalent at investment date) in the Group's capital for 12.7% stake and in 2018 approved the first loan to ACIFN (EUR 15 million in RON equivalent, in two tranches), followed by an EUR 5 million loan in 2020 under the Resilience Framework.
EBRD Finance Summary
EUR 20,000,000.00
Senior unsecured loan
Total Project Cost
EUR 20,000,000.00
Sources total: EUR 20,000,000
EBRD financing: EUR 20,000,000
Additionality
The Project provides access to long-term funding in local currency.
Environmental and Social Summary
Categorised FI (ESP 2019). ACIFN is an existing clients of EBRD and performance on environmental and social (E&S) issues to date has been satisfactory and complies with the EBRD's Performance Requirements (PRs) 2, 4 and 9 under existing exposures. There is a dedicated ESMS officer in place and staffs have been provided with E&S training. ACIFN ensures borrowers comply with the environmental and social national laws and regulations in force in Romania and have standard clauses in all Loan Agreements. ACIFN will be required to comply with the EBRD's Performance Requirements 2, 4 and 9 which includes adhering to the EBRD's E&S Exclusion List and submitting Annual E&S Reports via the Sustainability Index on implementation of the ESMS and compliance with the PRs.