GLOBAL investment bank Vnesto Capital has expressed interest in financing the expansion projects of listed firm AgriNurture Inc. (ANI), a company led by businessman Antonio Tiu.
In a disclosure, the company said its board of directors has accepted Vnesto’s letter of intent to finance ANI’s projects for up to $100 million.
AgriNurture can access up to $100 million of long-term financing, which shall be a long-term loan with interest pegged at Treasury bill rates plus a spread of 3 percent.
“The final amount and terms of the long-term financing deal would be finalized upon completion of the due diligence process. Upon the acceptance of the LOI, the formal application process officially commenced,” the company said in a disclosure. Vnesto Capital is a US-based global investment bank that provides long-term project financing and equity capital for enterprises in emerging markets.
ANI’s board of directors also authorized the company to subscribe to additional shares of Binangonan Rural Bank Inc., which owns one of the few electronic money issuer 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, the company said.
Together with the rural bank, ANI’s e-wallet can now be in sync with ATM cards of the bank and allow farmers to access cash anytime anywhere.
The bank has a license on financial technology platforms that can improve the access of Filipino farmers, especially those in remote areas, to Agri Agra Micro Financing, the company said.
Earthright Holdings Inc., the parent firm of ANI, has acquired a significant stake in Binangonan Bank via a subscription agreement to hike the bank’s capital.
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 and National Food Authority in relation to
agency’s Ri-Co or Rice and Corn Project.
ANI seeks to form a partnership with DA to participate in the project as the
company ANI seeks to introduce the Rice and Corn Blend to the NFA as
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,” the company said.
ANI is an exporter of agriculture products and hopes to ride on the 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.
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.