The board of listed AgriNurture Inc. (ANI) said it had approved a plan to infuse P100 million in additional capital into affiliate Agricultural Bank of the Philippines (ABP).
The move, which is subject to the approval of the Securities and Exchange Commission and Bangko Sentral ng Pilipinas, will bring ABP’s capital to P200 million.
ANI said 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 microfinance 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 used only for purchases from 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 fully-owned subsidiary, with an initial capital of P100 million.
The new unit will serve as ANI’s post harvest and farm technology arm. It will collaborate with hybrid seed producer BeiDaHuang and agri-biotech firm Ocean Biotech.
ANI also said the board had also approved a P320-million subscription by Japan’s Takuhiro Kusumi to the agri firm.