WCSS Agricover (IFC-39197)

Countries
  • Romania
Where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
FI
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
May 4, 2017
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Agricover Credit IFN SA
The holder of the loan, grant, or other investment.
Sectors
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 16.88 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 16.88 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2018

Disclosed by Bank Feb 23, 2017


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Project Description

According to IFC website, the project consists of an investment of up to RON70mn in the form of a 1-year, senior loan under IFC’s Working Capital Solutions (WCS) product to IFN to support the agriculture sector in Romania. The WCS loan is renewable up to two times at IFC’s option for two additional 1-year periods, for a maximum aggregate facility life of up to 3-years. The WCS loan will be disbursed in local currency to support the Company’s short term loans to small and medium enterprise (SME) farmers.

Specific positive developmental impacts are expected to be:
1. By directly financing the short-term needs of the Company to support the agribusiness sector, small and medium-sized farmers whom IFC cannot finance directly will have increased access to financing and, therefore, a positive impact on economic activity in Romania's agricultural regions.
2. By supporting IFN's portfolio expansion directed at SME farmers, IFC will aim to strengthen the value chain and increase capacity by allowing producers and processors to extend or have several production cycles through additional working capital. This will enable a better competitive position for the SME farmers in the local and regional markets.

Investment Description
  • International Finance Corporation (IFC)

IFN’s shareholders are Agricover Holding S.A. (99.99998%) and Agricover S.R.L. (0.00002%). Agricover Holding S.A. is the Group’s parent entity, which controls both IFN and Agricover S.R.L. (100%), a company focused solely on agri-business operations of the Group. The ultimate majority owner of the Group is Mr. Jabbar Kanani, a Romanian citizen of Iranian origin. Agricover Holding S.A. and its subsidiaries as outlined above are Mr. Kanani’s main assets.

Private Actors

Agricover Credit IFN S.A.'s shareholders are Agricover Holding S.A. (99.99998%) and Agricover S.R.L. (0.00002%). Agricover Holding S.A. is the Group’s parent entity, which controls both IFN and Agricover S.R.L. (100%), a company focused solely on agri-business operations of the Group. The ultimate majority owner of the Group is Mr. Jabbar Kanani, a Romanian citizen of Iranian origin. Agricover Holding S.A. and its subsidiaries as outlined above are Mr. Kanani’s main assets.

Contact Information

Project contact: Robert Rekkers
General Manager, Agricover Credit IFN S.A.
Email Address: Robert.Rekkers@agricover.ro
Office Address: Cubic Center Building, Bd. Pipera, nr. 1B, etaj 6, Voluntari, Ilfov, Romania
Website: http://agricover.ro/finantare/

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

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