Curmi & Partners

New Bond Issue

New Issue on Prospects MTF: AgriHoldings PLC €2 million 4.875% Senior Secured Bonds 2024.

Issuer

AgriHoldings PLC

Maturity

31st December 2024

Coupon 4.875%
Price €100
Ranking Senior Secured Bond
Coupon Frequency Annually
Amount on issue €2 million

                                                                                                                                                                                                                                                                                                                                                                                               

Issuer Profile: 

The Issuer is the holding company of AgriBank PLC (“the Bank” or “AgriBank”). Both entities are incorporated in Malta. The Bank was founded in 2012 and was granted a Credit Institution license by the Malta Financial Services Authority (“MFSA”). It obtained passporting rights to the UK later that year.

AgriBank is primarily involved in the provision of asset financing to the UK agricultural industry. Its core business is the provision of financing to land owning farmers in the UK to fund the purchase of farming equipment, the purchase of land, the construction of buildings, and the construction of renewable energy facilities on farm land. The main types of lending are finance leases, hire purchase agreements and secured loans. Historically, lending was focused on the funding of agricultural machinery and farming. However the prominence of financing on farm energy (“OFE”) projects has been increasing. According to information provided by the Issuer, since 2010, the percentage of UK farms investing in OFE projects increased from 5% to approximately 40%.

The Bank is now looking to expand into a new business area by providing banking services to Maltese corporate entities, also targeting gaming companies (specifically the provision of operating accounts not gambling accounts). In this respect, management believes there is scope to expand into what it considers as an under serviced sector. The objective is to offer services such as the provision of bank accounts and payment processing in both Euro and foreign currencies. Management expects that these new businesses will allow the Bank to diversify, both in terms of business risk and exchange rate risk.

Use of Proceeds:  The proceeds of the Bond issued by the Issuer will be used to invest in a €2 million Tier 2 subordinated bond issued by the Bank. The objective is to increase AgriBank’s Tier 2 Capital.

 

Expected Timetable:

Application forms available  14th December 2017
Offer Period

14th December to 21st December 2017

Announcement of basis of acceptance  27th December 2017
Commencement of interest on Bonds 28th December 2017
Issuance of Bonds 28th December 2017
Expected commencement of trading on Prospects MTF 28th December 2017

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

Should you be interested in participating, kindly contact Ms Emanda Spiteri Lucas or Ms Mariella Mifsud on 21347331.

                                                                                                                                                                                                                                                                                                                                                            

The Prospects MTF is a multilateral trading facility operated by the Malta Stock Exchange with the objective of offering Small and Medium sized Enterprises (“SMEs”) the opportunity to raise capital by issuing bonds or shares to the public. Trading activity on Prospects MTF is limited and thus impacts the liquidity of the instruments listed.

Investors are urged to read the Admission Document.