The public offering of new 15 346 305 shares by ELANA AgroCredit wrapped up on 18 May 2015 as successful after the company registered subscription of a total of 13 786 967 shares at BGN 1.02 issue price. The company raised BGN 14 mln. (BGN 14 062 706.34) in this second successful offering after the award-winning IPO in 2013. The capital increase was determined by prospectus to be successful if at least 5 mln. new shares are subscribed. The new funds are to be invested in new financial leasing contracts to finance farmland purchase for agricultural producers.
57% of the new shares were subscribed by institutional investors – pension funds, mutual funds and insurance company. 43% of the acquired shares went to individual investors. A new pension company joined the institutional investors Allianz Bulgaria Pension Company, DSK Rodina Pension Company and Doverie Pension Company – this is NN Pension Insurance (former ING Pension Insurance).
The new shares will be registered on the Bulgarian Stock Exchange on 23 June.
Proven result for the shareholders
Only in 2 years existence ELANA AgroCredit managed to prove the stability of its business model and to deliver 6.23% gross dividend yield for 2014. The current annual dividends are available for payment as of 18 May 2015 till 18 August 2015. Back in February the General Meeting of Shareholders voted for BGN 0.0623 gross dividend per share.
As of May 2013 when the first financial leasing contracts were signed, till end of April 2015, ELANA AgroCredit has invested BGN 17 054 800 in purchase of 2 378 ha farmland for farmers.
Reliable partner to the banks
ELANA AgroCredit was listed on the Bulgarian Stock Exchange in 2013 – the trading started 22 November 2013. The company raised BGN 4.4. mln. in an IPO, which is still considered one of the largest issues in the last 5 years. Therefore it was awarded The Best IPO in 2013 by the Bulgarian Stock Exchange. Meanwhile the company achievements and business model were appreciated by creditors: in 2014 the company raised debt funding by an agreement with the European Bank for Reconstruction and Development (EBRD) for up to EUR 5 mln.to finance land purchases of farmers with leasing contracts. In the end of 2014 ELANA AgroCredit got a BGN 3 mln. loan from Societe Generale Expressbank, which in April 2015 was extended with BGN 2 mln. more.