Agricultural land leasing company ELANA Agrocredit (0EA BU) to receive up to BGN 15m bank loan to finance its operations, the Company announced in a filing. The loan consists of two tranches: an investment loan up to BGN 15m for financing the expansion of the Company’s leasing portfolio and a working capital revolving loan up to BGN 5m. In any given moment, the total amount of the debt facility must not exceed BGN 15m.

Loan terms

The investment loan matures in 8 years and is capped at 2.79%, while the working capital loan’s term is 24 months and bears an interest rate of 2.2%. Since the start of the year, ELANA Agrocredit has invested BGN 4.9m and as at the end of Jun’19 has BGN 1.9m in cash (dividend payment due excluded).

H1 2019 net result surged 20% due to repaid loans

In Q2’19 alone, ELANA Agrocredit reported BGN 1.1m of interest income, up 8.6% y/y and net profit of BGN 752k, up 10.4% y/y. On YTD basis, the Company reported interest income of BGN 2.2m, up 8.2% y/y and other income of BGN 4.3m (almost entirely generated by sale of agricultural land with a book value of BGN 4.2m). Interest expenses dropped as the Company repaid BGN 4.1m of bank loans and thus affected positively the net result in H1’19 with net profit adding 20.8% y/y to BGN 1.6m. On a TTM basis, this entails a gross DPS for FY2019 of BGN 0.065, yielding 5.64% at current quotes.

Expanding work capital loans portfolio

Since inception in 2013, ELANA Agrocredit has invested a total of BGN 64.1m as a result of 2 920 deals for 94.3k dca of agricultural land. In relation to the working capital loans that the Company extends, since the start of the 2018/2019 agricultural year, ELANA Agrocredit’s short-term loan portfolio reached BGN 12.8m.

ELANA Agrocredit website