SIGNING OF A LOAN AGREEMENT BETWEEN AGROKOR AND A SYNDICATE OF INTERNATIONAL BANKS
Jul 21, 2006
Today in the Zagreb Hotel Westin, financing agreements were signed in the total amount of €475 million between the Agrokor Group and a syndicate of five international banks, ABN AMRO Bank N.V, Bank Austria Creditanstalt AG, Raiffeisen Zentralbank Österreich AG, Privredna banka Zagreb d.d. and Société Générale - Splitska banka d.d. The agreements were signed on behalf of Agrokor by Mr. Ivica Todorić, President of the Agrokor Group, on behalf of ABN AMRO Bank N.V. by Mr. Mike Elliff, Managing Director, CEEMEA Debt Origination, on behalf of Bank Austria Creditanstalt AG by Mr. Ingo Bleier, Deputy Managing Director Syndication & Loan Marktes, on behalf of Raiffeisen Zentralbank Österreich AG by Mr. Marc Faller, Vice President, on behalf of Privredna Banka Zagreb d.d. by Mr. Božo Prka, President of the Management Board, and on behalf of Société Générale - Splitska banka d.d. by Board Member Ms. Vedrana Carević. The arrangements encompass two Agreements, a syndicated term loan in the amount of €325 million with a maturity of 5 years and bearing an interest rate of 5%, as well as a €150 million facility. The purpose of the arrangements are intended for the redemption of the outstanding Agrokor €230 million notes that have a coupon of 11% as well as the refinancing of short term indebtedness. These financial arrangements are another confirmation of Agrokor's vision and strategy that have followed a phase of acquisitions and intensive expansion in the region and represent a significant step towards the restructuring of Agrokor's balance sheet and strengthening the financial stability as an important strategic objective of the Company, which will, in the long term, optimally support the further development of its operating business. Mr. Mike Elliff, on behalf of ABN AMRO Bank N.V., an international bank acting as a Global Coordinator of the facilities, stated on this occasion "Agrokor has received a strong vote of confidence from the international financial markets. The Company's syndicated loan, together with the highly successful bond tender, will provide Agrokor with both attractive financing and significant financial flexibility to react to the competitive developments in the dynamic markets in which it successfully operates". He further added "although the facility has been signed with these banks today, Agrokor look forward to welcoming a number of additional banks into the facility by mid-august when the syndication will be closed".
"In the last month, Agrokor has signed three very important financial agreements with the most renowned international financial institutions - the European Bank for Reconstruction and Development, that invested in Agrokor's share capital, the International Finance Corporation, a branch of the World Bank that has approved the financing of Agrokor subsidiaries PIK Vrbovec and Belje, as well as this syndicated facility today, with the leading European and regional banks. With their support, these banks have confirmed Agrokor's vision and strategy, through which it has realised an optimal maturity and structure of its debt and capital that will enable further expansion and improvement of the business, strengthen the balance sheet and in this way achieve one of its most important strategic objectives. Ahead of us now is the entry into a new phase of growth and development," said at the time of signing the Agreement Mr. Ivica Todorić.