EUR 90 M financing for local agribusiness

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Carmistin Group, one of the leading players on the Romanian agribusiness and meat processing  market, has signed a syndicated loan amounting to RON 427 million arranged by a syndicate of banks comprising the following lenders: Banca Comercială Română SA (member of Erste Group), acting as Bookrunner, Mandated Lead Arranger, Documentation Agent and Facility and Security Agent, CEC Bank as Mandated Lead Arranger and participating banks – EximBank SA, Intesa Sanpaolo Romania SA and OTP Bank Romania SA.

This complex facility will be used by over 20 companies of Carmistin Group for financing their investment projects, refinancing their existing bilateral financial debt, as well as for working capital needs.

This Facility is comprised of four tranches that can be used for several business purposes so that the various company needs could be met most efficiently:

  • long term facility for co-financing of investment projects developed with EU funds for setting up of new poultry farms, extension and endowment for the company’s slaughterhouse and for fodder capacity increase,
  • long term facility for the development of new swine farms, modernization of existing farms and increased capacity for refrigerating area,
  • revolving credit facility to refinance their existing debt and to finance increased working capital needs,
  • TVA financing facility related to the investment projects.

„This project will allow Carmistin Group to continue its growth at an accelerated pace in its three main business streams: chicken, pork and feed manufacturing. Thus, we will enter a new development stage for both increasing the speed of the investment process and managing and operating our business lines. The Carmistin Group companies operate independently, but with the same mission – everything for food!”, said Andrei Brumaru, General Manager, Carmistin Group.

“Financing Carmistin Group is one of the most ambitious entrepreneurial projects for developing a Romanian business activity, especially in the agribusiness sector, and we are honored that we have contributed to the implementation of this complex syndicated loan. We hope that this example will be followed by other Romanian entrepreneurs, as the banking system is ready to support the business investments that bring added value and create products and services Made in Romania”, said Bogdan Speteanu, Executive Director Corporate Products BCR.

PCF Investment Banking Romania (former Professional Capital Finance) acted as exclusive consultant of the borrower in structuring, negotiating and implementation of the transaction.

Nestor Nestor Diculescu Kingston Petersen (NNDKP) acted as legal advisor for the lenders and has coordinated due-diligence, as well as the structuring, negotiation and execution of the credit documentation.

Strătulă & Asociații acted as legal advisor for the borrowers.

Carmistin Group was founded in 2000 by the Paraschiv family.

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