ELANA Agrocredit

ELANA Agrocredit to pay BGN 0.086 dividend per share, yielding 6.4% at current quotes, the Company announced in a regulatory filing of its annual shareholders meeting scheduled for March 15th, 2018. The proposed DPS is 28% below our estimates and represents a 90% payout of FY2017 net income totaling BGN 1.6m.

Capital raise planned after dividend voting

ELANA Agrocredit also plans a 2:1 capital increase in the upcoming months. The Financial Supervision Commission approved the prospectus for raising BGN 20.8m by issuing 18 902 402 new shares at a BGN 1.1 per share. The public offering will be considered successful if a minimum of 10 mln. shares are subscribed.

The Company’s stock currently trades at BGN 1.35 per share as of Feb. 7th, 2018 close.

Latest performance of ELANA Agrocredit

ELANA Agrocredit lent a total of BGN 8.7m as working capital loans for farmers with leasing contracts, during the farming business year 2017/2018, marking an increase of 50% y/y, the company announced in its bulletin for December 2017.

This brings the total amount invested by ELANA Agrocredit in agriculture since its inception to more than BGN 68.5m in 2 390 deals. BGN 60.2 mln. is the amount invested by the company in the last 4 years in land purchase through leasing contracts with farmers. The total area of the land plots purchased through those leasing contracts amounts at approx. 7 500 ha.

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).

Latest Investors’ newsletter (December 2017)