ELANA Agrocredit strikes a new EUR 5m credit line from EBRD to finance its leasing operations, the Company announced in a statement to the stock exchange.
The loan is to be used in two EUR 2.5m tranches both bearing Euribor +2.75% interest. The line matures in 8 years.
Partnering with EBRD
This is the second credit line EBRD extends to ELANA Agrocredit. The first came in 2014 and was again a EUR 5m two tranche loan used over the next three years.
ELANA Agrocredit extends financial leasing to farmers for arable land acquisition in Bulgaria as land prices still benefit land owning rather than renting. As of the end of August 2016, Elana Agrocredit has built a BGN 44m portfolio, most it from the financing of land acquisition (BGN 41.2m). The rest from providing agricultural short term financing (BGN 2.8m).
Since inception at the end of 2013, it has financed 53 430 dca of land in more than 1 600 deals. The company provides mid to long term financial leasing, average 5-7 years, with a 20% down payment from the lessee and 9% average interest rate
At the latest Annual meeting of shareholders on 30 June 2016, ELANA Agrocredit confirmed distribution of dividend of BGN 0,04924 per share. This represented 4.1% DY according to the market price. First dividend came in 2015 after first full year of operations and stood at BGN 0.062 per share.