- The loan will be used to finance new investment projects and related working capital needs of Carmistin Group
Carmistin Group, a key player on the Romanian agribusiness market, signed a RON 636 million syndicated loan, following the amendment and increase by RON 209 million of the existing facilities, with the purpose to support the group’s new investment strategy.
The facility was coordinated by Banca Comercială Română SA (member of Erste Group), as Mandated Lead Arranger, Bookrunner, Documentation, Facility and Security Agent, alongside CEC Bank, as Mandated Lead Arranger and other participating banks – OTP Bank, Intesa Sanpaolo Bank and Eximbank.
PCF Investment Banking acted as the exclusive financial advisor of Carmistin Group for the structuring, negotiation and implementation of the financing facility.
Bulboacă și Asociații SPARL acted as legal advisor on behalf of the lenders.
The loan will be used for multiple purposes, to finance new investment projects launched by the Carmistin Group companies, including co-financing projects based on EU funds and working capital needs. The projects include livestock farms upgrade, modernization, extension and creation of new meat processing capacities, as well as the increase of the production capacity of the compound fodder factory.
“This loan facility comes to support Carmistin Group’s direction and vision to become the largest integrated protein producer in Romania by 2025, with a value system based on fair, healthy and eco-friendly production of food products. Innovating technologies and products have become critical for our vision of growth, and that is why we are deploying a comprehensive investment program that will lead to the efficient and sustainable development of our current production capacities. Without major investments, Romanian companies will not be able to ensure their competitiveness against international companies and implement sustainable development policies”, declared Andrei Brumaru, CEO of Carmistin Group.
“Romania has the potential to become a major player in the regional and global agribusiness sector, and Carmistin Group is one of the local companies which understood the crucial role of investments in infrastructure and technology. It is a best practice example, which, if replicated by more companies operating in this industry, may strengthen Romania’s position as producer and exporter of agricultural products, as well as ensure a better recognition of the made in Romania label”, declared Ana-Maria Samuilă, Head of Agribusiness & Food BCR.
“The agribusiness sector has constantly provided a significant contribution to Romania’s GDP over the past years, even during the pandemic, and we believe that it has a strong growth potential. Loan syndication is an alternative financial instrument designed to support the growth of the companies, taking also into consideration the latest developments at international level, innovations that drive added value and new trends in the aggrotech area. A solid business plan, supported by a syndicated loan, can facilitate a better integration of the companies in the global supply chain”, stated Grația Popescu, Senior Banker Loan Syndication BCR.
“The funds obtained by Carmistin are a positive sign not only for the agricultural sector, but also for the entire business environment in Romania, as it is a relevant funding granted to a group of locally-owned companies. The dynamics and agility of Carmistin are perfectly reflected in this custom-made syndicated facility, that covers all the needs of the group, from working capital, to complex structures for funding investment projects using public or EU funds”, declared Mihai Murgu, PCF Investment Banking Partner.
Set up in 2000 by Paraschiv family, Carmistin Group is one of the top players on the agribusiness and meat processing market in Romania. The group is also among the few agricultural holdings which integrates 90% of the agricultural-zootechnical production chain, from cereal cultivation, fodder production, animal breeding (chicken, pork, cattle) to slaughter, processing, and distribution of meat and ready to eat products (including through their own retail network).
Carmistin Group includes over 20 companies divided into four production divisions: chicken, pork, cattle and farming.
About Banca Comercială Română (BCR)
Banca Comerciala Romana (BCR), a member of Erste Group, 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, 12,700 POS and complete services of Internet banking, Mobile banking, Phone-banking and E-commerce.
About CEC Bank
CEC Bank is the oldest financial institution in Romania. Founded in 1864, CEC Bank currently has the largest footprint in Romania, with over 1.000 bank units and assets of over RON 44,4 bn at the end of June 2021.
CEC Bank is a top universal financial institution 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 through its online store CEC_IN – where banking services and products can be contracted 100% online.
EximBank is a specialized institution that is actively involved in supporting and promoting the Romanian business environment. Its financial instruments are dedicated exclusively to the corporate segment and can be accessed in advantageous conditions by any type of company, whether it is an SME or a large company, conducts international transactions, or addresses the domestic market. The companies also have at their disposal a competitive portfolio of treasury, cash management, trade finance and factoring products, which complete the financing and guarantee offer. At the same time, because it acts as an agent representing the state on the guarantees and insurance market, EximBank is one of the instruments through which public funds, made available by the Romanian state, support the sustainable development of the economy. For further details: www.eximbank.ro.
About OTP Bank Romania
OTP Bank Romania 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 Bank Romania is a subsidiary of OTP Group, a banking institution with 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 40 thousand employees serves nearly 16,3 million customers daily in 11 countries.
About Intesa Sanpaolo Bank
Intesa Sanpaolo Bank is the Romanian subsidiary of Intesa Sanpaolo Group, the leading Bank in Italy and one of the soundest and most profitable banks in Europe. It offers commercial, corporate investment banking, asset management and insurance services. The Intesa Sanpaolo Group has approximately 14.7 million customers in Italy who are assisted through both digital and traditional channels. The Group’s international subsidiary banks serve 7.1 million customers comprising subsidiaries operating in commercial banking in 12 countries in Central Eastern Europe and Middle Eastern and North African areas and an international network of specialists in support of corporate customers across 26 countries. Intesa Sanpaolo is considered one of the most sustainable banks in the world.
About PCF Investment Banking (formerly known as Professional Capital Finance)
PCF Investment Banking is a leader on the local financial consulting market, with a solid focus on corporate finance services, syndicated transactions, M&A and private equity investments.
With more than 15 years of experience through our consultants and a transactional volume that exceeds 1.5 billion Euro, PCF Investment Banking is one of the top players on the local market, specialized in industry, agriculture and infrastructure, that carries a client portfolio which includes both Romanian owned companies, as well as foreign equity companies.
About Bulboacă si Asociații
Bulboacă si Asociații is a Romanian law firm specialized in business law, which offers legal advice at international standards to corporations, financial institutions, entrepreneurs, investment funds. Founded in 2007, Bulboaca si Asociatii has become one of the strongest local brands of its type, being mainly known for legal advice in the field of finance and banking and for its focus on entrepreneurs.