Agrifirm renews and extends its financing by five years

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Orchard Finance was appointed by Royal Agrifirm Group as a financing advisor in mid-2021, to support the more than 120-year-old Dutch cooperative in the refinancing of its expiring financing agreement.

With more than 3,000 committed employees, Royal Agrifirm Group contributes to a responsible food chain for future generations. Agrifirm has measurable, relevant and sustainable value on the farm, in the fields and in the feed industry. Founded more than 120 years ago in the Netherlands, Agrifirm is now a leading agricultural cooperative with an international network of subsidiaries located in Europe, South America, the United States of America, Asia and a worldwide distribution network. Agrifirm is a cooperative with a network of approximately 10,000 affiliated Dutch farmers and growers.

Agrifirm's existing financing agreement was still very suitable, but reached the end of its term after carrying out two extension options. An important aspect in the preparation of the refinancing was determining the desired size of the financing. Agrifirm takes into account, among other things, fluctuations in its working capital due to potential price developments in raw materials and changes in the supply chain. After choosing the desired financing solution, Orchard assisted Agrifirm in the execution of a tender.

The financing process was completed in December 2021. In a competitive process, the existing banks have shown their strong interest in continuing the relationship with Agrifirm and fulfilling Agrifirm's wishes. The new financing is based on existing documentation with a limited number of changes. Two of the banks have been appointed as sustainability coordinators to further elaborate agreements with Agrifirm on a number of ESG KPIs and targets.

''Orchard strives for a long-term relationship with its clients. We are therefore very pleased with our relationship with Agrifirm, for which we have been able to act as a financing advisor since 2012. Together with Agrifirm, we have laid a solid foundation in a number of financing rounds. With this foundation, we were able to go through the refinancing process in a light and efficient process.”

- Rolf Michon, partner Orchard Finance