ELANA Agrocredit successfully completed its capital increase raising a total of BGN 19.5m, the Company reported in a regulatory filing. The minimum required for success of the offering was set at 10 mln. shares subscribed (BGN 1.10 per share).
In accordance with the prospectus, all shareholders as at 5th March 2018 received rights in the ratio of one right for each common share held in the Company. Thus, there were 18.9 million rights of which 17.7 million were exercised in a ratio of one right for one share, at BGN 1.10 per share. As a result, the Company raised a total of BGN 19.5m, almost meeting its original target to raise BGN 20.8m.
ELANA Agrocredit plans
Following the SPO, ELANA Agrocredit will increase its capital from 18.9 million shares to 36.6 million shares. ELANA Agrocredit will use the proceeds from the placement to further expand its lending activity during the period 2018 – 2019, following which the Company will seek debt financing before proceeding to a new capital increase. The latter is planned to take place in 2021, according to the published prospectus.
Investors’ safe-haven dividend stock
Back in March, ELANA Agrocredit’s shareholders approved BGN 0.0858 DPS. The latter dividend yields 7% at current market quotes. The company stocks are preferred on the stock market because 90% of the profit is being distributed as a dividend every year by rule. This low-risk investment brought 5.9% dividend yield from its first year profits and 4.1% per share from 2015 earnings. In 2017 shareholders gained 5% dividend yield from 2016 profits.
Latest performance of ELANA Agrocredit
Approx. BGN 73 mln. was invested in financial leasing contracts and working capital loans since start of business in 2013 till end of March 2018. The investment in land purchase through leasing contracts reached BGN 64 mln. The working capital loans went to BGN 8.5 mln. The company managed to grow loans to farmers in farming business year 2017/2018 by 50% as planned. 7 800 ha is the total size of the land plots purchased for farmers through the leasing contracts. ELANA Agrocredit managed to make leasing deals at the value of BGN 1.26 mln. only for the month of March.