On 22th December 2017, the Bulgarian Financial Commission gave permission to ELANA Agrocredit to proceed with its placement of 18.9 million new ordinary common shares at BGN 1.10 per share. The public offering will be considered successful if a minimum of 10 mln. shares are subscribed.
The prospectus was filed for approval on 20 November 2017.
The Company announced in a regulatory filing it will initiate its 2 for 1 capital raise after distributing its mandatory annual dividend for 2017, which is expected in spring 2018.
“It is our practice to distribute dividend before initiating capital increase”, said Georgi Georgiev, ELANA Agrocredit procurist, in an interview for Capital Daily. “We will do our best to proceed with the offering at the earliest, i.e. in the beginning of spring, so that we can invest the raised capital quickly within the agricultural year and maximize the profit for our shareholders”, he explained.
A total of BGN 66 mln. invested in farming by ELANA Agrocredit
In 4.5 years (by the end of November 2017) the Company invested a total of BGN 59.4 mln. in leasing contracts for purchase of farmland. The total plots represent farmland of 7 350 ha. In November 2017 the new deals were of value approx. BGN 2 mln.
ELANA Agrocredit has distributed also loans to farmers of BGN 7 mln. Management expects loans will be increased up to BGN 8 mln.
Successful bond issue in 2017
Back in July 2017 the Company placed a bond issue with the value of EUR 5 260 000. The bond pays 3.20% fixed maturing in 5 years and 3 months. First coupon payment was planned 3 months after the date of placement. It started trading n the Bulgarian Stock Exchange in November with the code 0EA2 (the first symbol to be read as a digit).