DGAP-News: Distributor of agriculture equipment Ekotechnika issues a corporate bond with a yield of 9.75% per year
(firmenpresse) - DGAP-News: Ekotechnika GmbH / Key word(s): Bond/Issue of Debt
Distributor of agriculture equipment Ekotechnika issues a corporate
bond with a yield of 9.75% per year
04.04.2013 / 09:52
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Distributor of agriculture equipment Ekotechnika issues a corporate bond
with a yield of 9.75% per year
- Russia's largest distributor of agriculture equipment set for continued
growth
- EUR 60 million issue to be used to refinance debt and expand location
network
- Start of subscription at the Stuttgart stock exchange (Bondm) expected
on 29 April 2013
- Chief supplier, John Deere, pushing ahead its Russian business
Walldorf, 4 April 2013 - Ekotechnika GmbH, the German holding company of
Russia's largest distributor of agriculture equipment, is planning to issue
a EUR 60 million corporate bond through the Stuttgart stock exchange.
Subscriptions are planned to start on 29 April 2013. The proceeds from the
issue will be used to optimise the company's funding structure and expand
its location network. Carrying a fixed interest rate of 9.75% p.a., the
bond (WKN: A1R1A1 / ISIN: DE000A1R1A18) will mature in five years.
Frankfurt-based equinet Bank AG will serve as lead manager and bookrunner.
Institutional investors will be able to subscribe the bond through equinet.
Other investors in Germany, Luxembourg and Austria can subscribe the bond
with a nominal value of EUR 1,000 by placing an order with the Stuttgart
stock exchange through their own banks. The bond is intended to be listed
in the Bondm trading segment of the Stuttgart stock exchange.
'With our bond investors benefit from the megatrend agriculture in the
world's largest country,' says Wolfgang Bläsi, managing director of
Ekotechnika GmbH. 'Ekotechnika continues to benefit from the pent-up demand
for modern equipment in the Russian agricultural sector. Being one of the
top three John Deere distributor in Europe, Ekotechnika has a strong market
position which it wants to expand.' Apart from sales of new equipment, the
company will drive its growth through such high-margin businesses as spare
parts sales, after-sales services and used equipment trading.
The combined size of Ekotechnika's three sales regions in Russia - Central
Russia, Chernozem Region and Siberia - is equivalent to that of Germany,
Italy and France combined. In the financial year 2011/12 (period ended 30
September), the company recorded healthy growth and sold almost 2000 new
machines. Sales grew by just under 21% to EUR 169.6 million. The group's
operating result (EBIT) came in at EUR 15.4 million, up 380% on the prior
year. Cash flow from operations amounted to EUR 18.3 million in the period.
Ekotechnika predominantly sells agriculture equipment made by world
industry leader John Deere, which accounted for more than two thirds of
2011/12 sales. In addition, the company's range includes 13 other leading
manufacturers of agricultural equipment including German makers such as
GEA, BvL and Grimme. Spare parts sales and after-sales services already
contributed EUR 25.5 million and EUR 3.3 million, respectively, to Group
sales, and the trend is pointing sharply upwards in these segments.
Dr. Wolfgang Köllner, member of the management team of the Russian
subsidiary, says: 'Going forward to 2016, we want to double the number of
new machines sold and treble our revenues from spare parts sales and
after-sales services. In addition, the Russian market for used machinery is
still quite young and offers great potential.'
Agricultural machinery remained one of the fastest growing sectors of
industry worldwide in 2012. According to German engineering association
VDMA, the global volume rose by approximately 8% to EUR 86 billion. Being
the world's largest country, Russia is considered by international
manufacturers to be one of the markets offering the greatest potential.
This is why John Deere is undertaking a major expansion of its product
range for Russia as well as its local capacities.
Wolfgang Bläsi says: 'Our bond is ideally suited to put our growth
programme on a stable medium-term foundation. The proceeds will essentially
be used to optimise our funding structure as well as to expand our network
of locations.'
Disclaimer:
This information does not constitute an offer to buy securities of
Ekotechnika GmbH and should not be regarded as a substitute for a
securities prospectus. Any investment decision regarding the bond issued by
Ekotechnika GmbH must be based exclusively on the securities prospectus
approved by the Federal Financial Supervisory Authority, which can be found
at www.ekotechnika.de.
About Ekotechnika
Walldorf-based Ekotechnika GmbH is the German holding company of the
Ekoniva-Technika Group, the largest distributor of agriculture equipment in
Russia. The company's single most important supplier is John Deere&Co.,
the world's leading manufacturer in this field. In addition, Ekotechnika
sells equipment from another 11 market-leading manufacturers. Its main
business is in selling new equipment such as tractors but also milking
equipment and precision farming technology. In addition, the company sells
spare parts and provides service and maintenance. Ekotechnika's founder and
main shareholder is Stefan Dürr, who has been active in the Russian farming
sector since the late eighties and has been instrumental in its
modernisation over the past two decades. In 2011 the equipment business was
separated from the farming business, which now operates independently under
the name Ekosem-Agrar. Operating 12 locations in attractive Russian farming
regions, Ekotechnika today employs 625 people and generates sales of just
under EUR 170 million.
Contact
Ekotechnika GmbH
Johann-Jakob-Astor-Str. 49
69190 Walldorf
P: +49 (0) 6227 3 58 59 60
E: presse(at)ekotechnika.de
www.ekotechnika.de
Press / Investor Relations
Fabian Lorenz
IR.on AG
P: +49 (0) 221 9140 974
E: fabian.lorenz(at)ir-on.com
End of Corporate News
The picture belonging to this press release can be found here:
http://newsfeed2.equitystory.com/ekotechnika/205990.html
Caption: Ekotechnika ist einer der Top 3 John Deere Ha?ndler in Europa
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04.04.2013 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP's Distribution Services include Regulatory Announcements,
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Media archive at www.dgap-medientreff.de and www.dgap.de
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205990 04.04.2013
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