ANI gets $100-M long term credit for expansion
MANILA — Global investment bank Vnesto Capital has expressed interest in financing the expansion projects of listed AgriNurture Inc. (ANI).
In a disclosure Monday, ANI said its board of directors has accepted Vnesto’s letter of intent to finance ANI’s projects for up to US$100 million.
Under the LOI, AgriNurture can avail up to US$100 million of long term financing, which shall be a long term loan with interest pegged at t-bill rates plus three percent.
The final amount and terms of the long term financing deal would be finalized upon completion of due diligence process. Upon the acceptance of the LOI, the formal application process officially commenced.
Vnesto Capital is a US-based global investment bank that provides long term project financing and equity capital for enterprises in emerging markets.
This developed as ANI’s board of directors authorized the company to subscribe to additional shares of Binangongan Rural Bank, Inc. (BRB) which owns one of the few electronic money issuer (EMI) licenses issued in the country by the Bangko Sentral ng Pilipinas.
The move is part of a plan to establish a closed loop agricultural ecosystem being envisioned by ANI. Together with BRB, ANI’s e-wallet can now be in sync with ATM cards of the bank and allows farmers to access cash anytime anywhere.
BRB has licensed Financial Technology Platforms that can improve the access of Filipino farmers — especially those in remote areas — to Agri Agra Micro Financing.
Earthright Holdings Inc. (EHI), the parent firm of listed ANI has acquired a significant stake in BRB via subscription agreement to hike the bank’s capital recently.
The partnership will launch a full digital banking platform in the first half of the year aimed at providing microfinancing to farmers.
ANI president Antonio Tiu said the company also received the green light from the board to submit unsolicited proposals to the Department of Agriculture (DA) and National Food Authority (NFA) in relation to DA’s Ri-Co or Rice and Corn Project.
Toward this end, ANI seeks to form a partnership with DA to participate in the project. Likewise, ANI seeks to introduce the Rice and Corn Blend to the NFA as an alternative staple food. This is a paradigm shift in the Agri sector transforming palay growers into producers of value added finished products. The Ri-Co farmers will be able to access financing through e-vouchers to be made available via the ecosystem of ANI.
ANI is an exporter of agriculture products and hopes to ride on the steadily growing demands from neighboring countries with aging and declining farmers.
The company ventured into the importation and trading of rice in the first quarter of 2015 and has since then participated in NFA’s rice importation program for the private sector.
Currently, ANI conducts its business through operating divisions and wholly-owned or majority-owned subsidiaries. The Philippine core operations group is organized into three business units, namely export, local distribution, and retail/franchising with brand names such as Big Chill and Tully’s.
