The board of directors of listed agri-conglomerate AgriNurture, Inc. (ANI) said it has approved a plan to infuse P100-million to increase the capital of affiliate Agricultural Bank of the Philippines (ABP) to Php200-million, subject to final approval by the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP).
In a disclosure to the Philippine Stock Exchange (PSE), ANI said on Wednesday that ABP’s capital hike would fund the expansion of the bank’s P2P platform and e-wallet business. Through the capital infusion, ANI aims to enhance supply chain micro-finance access of Filipino farmers in remote areas using technology.
ANI president and CEO Antonio Tiu said ABP’s P2P platform would allow farmers to borrow money directly using their mobile phones. Proceeds of the loan can then be stored in the farmers’ e-wallet which can be exclusively used for purchases in ANI’s accredited merchants nationwide.
To complete the company’s farm-to-plate agri-eco system for immediate fintech integration, ANI also approved the incorporation of Agri Technology Holdings, Inc. (ATHI), a 100-percent owned subsidiary, with an initial capital of Php100 million.
The new subsidiary will serve as ANI’s post harvest and farm technology arm. It will also collaborate with hybrid seed producer BeiDaHuang and agri-biotech company Ocean Biotech, both ANI subsidiaries.
Finally, ANI disclosed that the company’s board of directors has approved a Php320-million subscription of Japanese investor Takuhiro Kusumi in the agri firm, subject to foreign equity limits set by law.
ANI’s subscription to increase ABP’s capital as well as the incorporation of ATHI are both awaiting SEC approval.