ELANA Agrocredit investment in farmland up 35% in H1 2018


In June 2018 ELANA Agrocredit invested in purchase of 700 dca (70 ha) farmland as making financial leasing contracts with farmers, the company announced in its monthly newsletter for investors. The deals amounted at BGN 729 510. That added to a total of BGN 6 033 000 investment in H1 2018.

Investment grows 35% during the first 6 months of 2018 compared to the same period last year when the deals amounted at a total of BGN 4 480 000.

BGN 75 million of investment in boosting farmers’ business

By the end of June 2018 ELANA Agrocredit has registered a total of BGN 75 million investment in farmland deals for leasing contracts and working capital loans for farmers.

The total land deals as of mid-2013 are BGN 66.3 million and the loans distributed in the agricultural 2017/2018 amount at BGN 8.8 million. The company reached the target of 50% growth of loans for one year.

ELANA Agrocredit raised approx. BGN 20 mln. in SPO

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 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.

In June 2018 the company used BGN 3 million of raised capital to pay out in advance some loans to EBRD and Societe Generale Expressbank.

Investors’ safe-haven dividend stock

Back in March, ELANA Agrocredit’s shareholders approved BGN 0.0858 DPS. The latter dividend yields approx.. 7% at current market quotes, which ranked ELANA Agrocredit as the best dividend payer this dividend season.

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.

Read June 2018 newsletter for investors