BCR and Erste Group arrange EUR 100 mn club loan financing for Cerealcom Group

Bucharest, 26 July 2023 - Cerealcom Group, one of the most successful Romanian agribusinesses and the country’s largest producer and exporter of cereals, has signed its first club loan financing. The 100 million euros revolving loan will be used for financing and supporting the operation of its modern logistics base, as well as the expansion of its grain purchasing and exporting base. The credit facility also includes an accordion feature, which will enable the company to access an additional 50 million euros financing.

The facility was arranged by Banca Comercială Română SA (BCR) and Erste Group Bank AG (Erste Group), both acting as joint Mandated Lead Arrangers, while BCR also acted as a Documentation Agent, and Facility & Security Agent.

In the Cerealcom Group club loan, BCR is participating with EUR 70 million and Erste Group with EUR 30 million. The loan has its final maturity date in 2025 and is intended to finance Cerealcom Group’s current activities and the implementation of specific projects.

"BCR is a long-term partner, and this club loan financing we are accessing now supports their expertise in agribusiness. Our collaboration of more than 20 years has been strengthened by BCR's willingness to understand the essence of the economic processes in the agricultural industry, but also by their constant market tenability which meant continuous development of flexible and efficient banking products. For Cerealcom, every interaction with BCR has showed confidence that we can do more and better together. It is an example of the support a bank shows not only to its customers, but to key industries," said Ing. Anghel Mihai, CEO Cerealcom.

"We are honored to be able to support a business of Cerealcom Group’s magnitude in its strategy to strengthen its local footprint, as well as to diversify its commercial channels. This transaction is the result of a long-standing collaboration based on trust, consistency, and reliability. We believe and support the development of Romania's agricultural potential and we are glad to be partners for one of the most successful Romanian agribusinesses, as BCR stands by local entrepreneurs, investing and supporting them in their desire to sustain a competitive economy," added Ana-Maria Samuilă, Head of Agribusiness & Food BCR.

"Sustainable financing of the agribusiness sector is a priority for BCR, and Cerealcom is one of the most active producers and exporters of cereals and oilseeds in Romania, who signed for the first time a syndicated facility type club deal which includes also an accordion feature allowing the company to increase its working capital financing and the group of lenders," mentioned Grația Popescu, Senior Banker Loan Syndication BCR.

“Erste Group remains committed to delivering prosperity across the CEE region, in which Romania is one of our strategic markets. Over the past year, we’ve seen high volatility in commodity markets, and the prices of grains and oilseeds were no exception. Ensuring adequate liquidity is key for our customers and is especially relevant for Cerealcom Group, the largest Romanian exporter of agricultural products. The extra support provided by this facility will contribute further to the security of local and regional food chains,” said George Barbat, Industry Leader Commodities at Erste Group.

The CMS Finance team advising the syndicate of banks included Ana Radnev, Tudor Năftica, Dan Pătrașcu, and Florian Păcălici.

BCR offers a full range of financial products and services through a network of 20 business centres and 16 mobile offices dedicated to companies and 320 retail units located in most of the country's cities with more than 10,000 inhabitants, where 40% of units are cashless. BCR is Romania's No.1 bank in the transaction banking market, with BCR customers having the largest national network of ATMs and multifunctional machines - almost 2000 machines, and full banking services through Internet banking, Mobile banking, Phone-banking and E-commerce.

For more information, please contact the press office at: comunicare@bcr.ro

This information is also available on our website at: www.bcr.ro