| Thu 19 Feb 2009, 16:13 | | AFR - Afgri Enters Into A R2 5 Billion Securitisation Programme |
|
AFR
AFR
AFR - Afgri Enters Into A R2, 5 Billion Securitisation Programme
AFGRI Limited
(Incorporated in the Republic of South Africa)
Registration number: 1995/004030/06
ISIN: ZAE000040549
Share Code: AFR
AFGRI ENTERS INTO A R2, 5 BILLION SECURITISATION PROGRAMME
Gro Capital Financial Services (Pty) Limited ("Gro Capital"), a wholly owned
subsidiary of AFGRI Operations Limited ("AFGRI") has entered into a debtors`
securitisation programme ("the programme") arranged by Co-operatieve Centrale
Raiffeinsen-Boerenleenbank B.A., trading as Rabobank International ("Rabobank")
to the value of R2, 5 billion.
In terms of the structure of the programme, Gro Capital will sell part of its
debtors` book, at book value, to a SPV company registered for the purpose of the
programme.
The programme is structured and arranged by Rabobank and part financed by
Erasmus Capital Corporation ("Erasmus"), an international funding conduit with
assets worth around R40 billion. Erasmus is funding the first R1, 250 billion,
and the balance will be provided by both the local and international capital
markets. Rabobank underwrites Erasmus` funding with a liquidity facility for R1,
250 billion.
Situated in the Netherlands, Rabobank has representation in 43 countries with
nine million clients and 60 000 employees worldwide. The bank has the highest
possible credit rating (AAA) and consists of 161 independent, local cooperative
banks in the Netherlands - a model employed successfully since 1898.
Chris Venter, Chief Executive Officer of AFGRI Limited says, "We are delighted
to have concluded this transaction as it allows us more flexibility in raising
agricultural finance for our customers, the farmers. Historically, the South
African agricultural sector was limited in terms of the providers of
agricultural finance. This transaction is truly a breakthrough for the
agricultural sector as we have proved that the South African agricultural sector
is of such a high standing that a reputable international bank is willing to
fund AFGRI and the South African farmer in a time of turmoil for the
international banking sector."
Venter concludes "We believe that this transaction proves that AFGRI`s
performance as well as the quality of our debtors, the farmers, is of world-
class standard.
Issued for: AFGRI Limited/AFGRI Beperk
Contact: Chris Venter, CEO: 012 643 8041
Fax no: 012 663 8024
Email: chris.venter@afgri.co.za
Website: www.afgri.co.za
Issued by: AFGRI Communications, Branding & Marketing
Contact: Tshidi Matshediso: 012 643 8267, 082 796 9640
Fax no: 086 636 9611
Email: tshidi.matshediso@afgri.co.za
Date: 19 February 2009
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 19/02/2009 16:13:02 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
