- BCR acted as mandated bookrunner and lead arranger and CEC Bank as mandated lead arranger of the RON 427 million (approx. EUR 90 million) syndicated loan for Carmistin Group
- The loan will be used in order to support the financing of their investment projects and working capital needs of Carmistin Group
Carmistin Group, one of the leading players on the Romanian agribusiness and meat processing market, has signed a syndicated loan amounting to RON 427 million arranged by a syndicate of banks comprising the following lenders: Banca Comercială Română SA (member of Erste Group), acting as Bookrunner, Mandated Lead Arranger, Documentation Agent and Facility and Security Agent, CEC Bank as Mandated Lead Arranger and participating banks – EximBank SA, Intesa Sanpaolo Romania SA and OTP Bank Romania SA.
This complex facility will be used by over 20 companies of Carmistin Group for financing their investment projects, refinancing their existing bilateral financial debt, as well as for working capital needs.
This Facility is comprised of four tranches that can be used for several business purposes so that the various company needs could be met most efficiently:
- long term facility for co-financing of investment projects developed with EU funds for setting up of new poultry farms, extension and endowment for the company’s slaughterhouse and for fodder capacity increase,
- long term facility for the development of new swine farms, modernization of existing farms and increased capacity for refrigerating area,
- revolving credit facility to refinance their existing debt and to finance increased working capital needs,
- TVA financing facility related to the investment projects.
„This project will allow Carmistin Group to continue its growth at an accelerated pace in its three main business streams: chicken, pork and feed manufacturing. Thus, we will enter a new development stage for both increasing the speed of the investment process and managing and operating our business lines. The Carmistin Group companies operate independently, but with the same mission – everything for food!”, said Andrei Brumaru, General Manager, Carmistin Group.
“Financing Carmistin Group is one of the most ambitious entrepreneurial projects for developing a Romanian business activity, especially in the agribusiness sector, and we are honored that we have contributed to the implementation of this complex syndicated loan. We hope that this example will be followed by other Romanian entrepreneurs, as the banking system is ready to support the business investments that bring added value and create products and services Made in Romania”, said Bogdan Speteanu, Executive Director Corporate Products BCR.
PCF Investment Banking Romania (former Professional Capital Finance) acted as exclusive consultant of the borrower in structuring, negotiating and implementation of the transaction.
Nestor Nestor Diculescu Kingston Petersen (NNDKP) acted as legal advisor for the lenders and has coordinated due-diligence, as well as the structuring, negotiation and execution of the credit documentation.
Strătulă & Asociații acted as legal advisor for the borrowers.
About Carmistin International
Founded in 2000 by the Paraschiv family, the Carmistin Group is one of the largest players on the Romanian agribusiness and meat processing market. Furthermore, Carmistin is one of the few agricultural holding companies that integrates 90% of the agro-zootechnical production chain, starting from the cultivation of cereals, feed production, animal husbandry (chicken, pork, beef) to slaughter, processing and distribution of meat products and preparation (including in its own retail network).
Carmistin Group has over 20 companies grouped into four production lines: chicken, pork, beef and agriculture.
Banca Comerciala Romana is the most important financial group in Romania, including operations of universal bank (retail, corporate & investment banking, treasury and capital markets), as well as specialized companies on the leasing market, private pensions, housing banks and banking services.
BCR provides a full range of financial products and services, through a network of 17 business centers and 16 mobile offices dedicated to companies and 371 retail units located in most cities across the country with over 10,000 inhabitants. BCR is the No. 1 bank in Romania in the market of bank transactions, BCR customers having available the largest national network of ATM and multifunctional machines- almost 1,830, approximately 12,700 POS and complete services of Internet banking, Mobile banking, Phone-banking and E-commerce.
About CEC Bank
CEC Bank is the financial institution with the longest tradition in Romania. Founded in 1864, CEC Bank currently has the largest branch network in Romania, with over 1.000 units and assets of over RON 36 billion at the end of June 2020. CEC Bank is a top universal bank on the Romanian market, offering a full range of products and services for private individuals, SMEs and large companies, through a variety of channels: branches, ATMs, Internet Banking (CECOnline), Mobile Banking and Phone Banking (TeleCEC).
EximBank is a specialized institution actively involved in supporting and promoting the Romanian business environment. Its specific financial instruments are exclusively targeted to the corporate segment and may be accessed in advantageous conditions by any type of company, either SME or big company, involved in international transactions or solely active on local market. The companies benefit from a competitive portfolio of treasury, cash management, trade finance and factoring products, that come to add up to the financing and guaranteeing offer. In addition, acting as a state agent on the Romanian market of guarantees and insurance, EximBank is the main channel for the public funds made available by the state to be disposed in the real economy. Additional details at www.eximbank.ro.
About OTP Bank Romania
OTP Bank Romania, a subsidiary of OTP Group, is an integrated and self-financed provider of financial services. With an approach defined by responsibility, commitment and professionalism, OTP Bank Romania understands the needs of clients and the current context of the market and is a trusted partner in the provision of financial services. OTP Group has more than 70 years of activity in the financial sector in Central and Eastern Europe, while the Romanian subsidiary has marked 16 years of presence in the local market. Promoting innovation, stable growth and integrated financial services, OTP Group has become a dominant player in the Central and Eastern European market and is considered an important banking group even on a European scale. The community of about 36 thousand employees serves nearly 19 million customers daily in 12 countries.
About Intesa Sanpaolo
Intesa Sanpaolo Bank is the subsidiary of Intesa Sanpaolo Group, one of the largest banking groups in Europe and a leader in Italy in all areas of business (retail, corporate and wealth management). The group provides services to 11.9 million customers, through a network of over 4,200 agencies, distributed throughout Italy, with market shares of over 12% in most regions of the country. Intesa Sanpaolo has a strategic international presence, with approximately 1,100 branches and 7.5 million customers, including subsidiaries operating in the commercial banking sector in 12 countries in Central and Eastern Europe, the Middle East and North Africa, and an international network. of specialists who support corporate clients in 25 countries, especially in regions where Italian companies operate, such as the USA, Brazil, Russia, India and China.
About PCF Investment Banking (previously known as Professional Capital Finance)
PCF Investment Banking is the local leader in the financial consultancy market, with a strong focus on corporate finance, syndicated loans, M&A & private equity investment services.
With over 15 years of experience offered by their consultants and an overall transaction value of over 1,5 billion EUR, PCF Investment Banking is one of the leading players in the market, with an expertise that covers the industrial, agriculture and infrastructure areas and a portfolio that includes companies with both Romanian and external capital.