AGREEMENT BETWEEN AGROKOR AND IFC SIGNED
Jul 19, 2006
A Long-Term Loan Agreement was signed today between Agrokor and the International Finance Corporation (IFC), the private sector arm of the World Bank Group. On behalf of Agrokor the Agreement was signed by Ivica Todorić, President of the Agrokor Group and on behalf of IFC by Edward Nassim, IFC's Regional Vice President. The long-term financing will enable further investments in PIK Vrbovec and Belje and demonstrates IFC's confidence in Agrokor's strategy and ability to further restructure these two companies. The €40m worth Agreement shall secure long-term funds to refinance existing debt, as well as for additional investments in PIK Vrbovec and Belje, thus supporting the continuation of restructuring programs and expansion plans through investment in production quality, capacity expansion, efficiency, productivity and improvement in cost structure of both companies. On the occasion of signing the Agreement Mr. Ivica Todorić, President of the Agrokor Group said: "This long term financing demonstrates the confidence of one of the world's leading financial institutions in Agrokor, understanding our vision and strategy and supporting our rationale for investing in PIK Vrbovec and Belje". "IFC is pleased to support Agrokor's investments to improve the operational efficiency of recently privatized companies. Under Agrokor's management, the project should ensure PIK Vrbovec's and Belje's financial viability and environmental sustainability", said Mr. Edward Nassim, IFC's Regional Vice President for Afrika, Europe and Middle East. Collaboration between Agrokor and IFC will also continue through improvement of operational standards, quality management systems, occupational health and safety in line with EU standards, by introducing HACCP, an integrated food quality and safety program, where this is appropriate. IFC and Agrokor are committed to following the highest environmental standards and will actively work together to improve environment practices at PIK Vrbovec and Belje. The Washington D.C.-based International Finance Corporation, IFC, is an arm of the World Bank Group responsible for financing private sector investments. IFC coordinates its activities with other World Bank institutions, while being legally and financially independent. Its 178 member countries provide the share capital and jointly establish its policies.