The European Bank for Reconstruction and Development (EBRD) is providing a Romanian lei equivalent of EUR 10 million to Agricover Credit IFN, a firm that finances the agricultural sector in Romania, a press release informs.
The funds will allow the firm to meet the growing financing needs of local farmers, increase its loan portfolio and market share. Agricover Credit IFN has a leading position in terms of granting agricultural loans and works with more than 15 percent of all professional farmers.
The firm is part of Agricover Holding SA, a major player in the Romanian agricultural sector, offering agribusiness and financial services to farmers through a highly integrated and original business model centred around satisfying the essential needs of farmers.
With 17 years of experience in Romanian agriculture and 850 employees, the company supports more than 4,500 farmers through its two main subsidiaries Agricover SA and Agricover Credit IFN.
Last year the EBRD acquired a 13 percent stake in the holding.
The bank is a leading institutional investor in Romania. It focuses on promoting stability and expanding products in the financial sector, strengthening infrastructure through improved efficiency and greater private sector involvement, as well as restructuring the power sector and increasing energy efficiency and sustainability.
The EBRD has to date invested close to EUR 8 billion in Romania in more than 400 projects. Last year alone, the Bank invested over half a billion euros in the country. Of this financing, 93 percent was provided to the private sector.