DGAP-News: KTG Agrar issues second corporate bond to finance growth
(firmenpresse) - DGAP-News: KTG Agrar AG / Key word(s): Bond/Issue of Debt
KTG Agrar issues second corporate bond to finance growth
06.06.2011 / 07:55
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CORPORATE NEWS
KTG Agrar issues second corporate bond to finance growth
- Corporate bond: 7.125% p.a. / 6-year term / up to EUR 50 million
- Investment grade rating (BBB) and creditworthiness seal from Creditreform
- Growth to be pushed ahead following record year 2010
- Continued investments in farmland assets
- Exploiting the growth opportunities for the cultivation of agricultural
commodities and the production of biogas
Hamburg, 6 June 2011 - KTG Agrar AG (ISIN: DE000A0DN1J4) is issuing a
corporate bond to fund its continued growth. The issue has a volume of up
to EUR 50 million. With a term of six years, a fixed interest rate of
7.125% p.a. and a minimum investment of EUR 1,000, the 'KTG Biowertpapier
II' is targeted at private investors, asset managers and institutional
investors. The bond is available directly from the company (www.ktg.ag). As
of June 7, The bond can be purchased directly from the company
(www.ktg.ag). Staff at KTG Agrar's information centre will be available to
provide information about details of the bond and the subscription process.
Beside the direct marketing the bond can be subscribed through the
Frankfurt Stock Exchange. Subsequent the listing in the Entry Standard of
the Frankfurt Stock Exchange is planned.
'This bond allows investing in agriculture, a sector with a promising
future, as demand for farmland, healthy food and clean energy continues to
grow,' says Siegfried Hofreiter, CEO of KTG Agrar. For more than 15 years
the company has produced high-quality agricultural commodities and
carbon-neutral energy on the same fields. Hofreiter: 'The bond issue is
designed to further strengthen our funding base and accelerate our
sustainable growth strategy in our core fields of business on a solid
basis.' The record results achieved in the last financial year have enabled
KTG Agrar to further expand its position as Europe's leading agricultural
company. Total output grew by 18.5 percent from EUR 59.7 million to EUR
70.8 million, while EBIT rose even faster from EUR 9.2 million to EUR 13.4
million, up 46.1 percent on the previous year. 'Our Biowertpapier I bond is
also listed in this market and trading far above 100 percent it has been
one of the top performers. This demonstrates the solidity and efficacy of
our business model as well as our attractiveness for investors,' says KTG
Agrar CEO Siegfried Hofreiter.
Company plans to add farmland and to raise the percentage of company-owned
land
The company grows organic food crops as well as conventional grain, maize
and rapeseed. Earlier this year KTG Agrar expanded its value chain through
the takeover of frozen food manufacturer Frenzel. KTG Agrar currently farms
more than 33,000 hectares in eastern Germany and in Lithuania, an EU member
country, which makes it a leading European agribusiness in terms of total
farmland holdings. The issue of the bond is to facilitate an expansion of
the total farmland to 50,000 hectares in the medium term.
The company also intends to increase the percentage of company-owned
farmland from almost 20 percent to 25 percent over the coming years. The
rationale is that farmland is a finite and inflation-protected investment
which can support solid returns.
Biogas: Carbon-neutral energy production to be significantly expanded
Since 2007 the production of environmentally friendly energy from biogas
has been the third pillar of the business. The company currently operates
biogas plants rated for a total electrical output of approximately 16
megawatts (MW) at six locations, covering the energy needs of some 27,000
households. KTG Agrar intends to increase its biogas production capacity to
25 - 30 megawatts by the end of 2011. Additional plants with a combined
capacity of seven megawatts are under construction. The construction of
plants with a combined capacity of four megawatts is to start already in
autumn of this year; additional approval procedures for another ten
megawatts of capacity are already under way. Dr. Thomas Berger, the KTG
Board member in charge of the energy segment, explains: 'Biogas can meet
both baseload and peak load requirements and is available around the clock.
As such, it is an indispensable element in the environmentally friendly
energy mix of the future.'
KTG Agrar's integrated concept allows producing high-quality agricultural
commodities and clean energy at the same time. The biogas plants are
located in the direct vicinity of its farms, allowing for fast and
efficient feedstock supplies. KTG has increasingly replaced maize with
grass and hay cuttings as well as intercrops. The latter, in particular,
make ideal feedstock for biogas plants. Once the grain has been harvested
in summer, millet and clover grass are sown and harvested in November.
Grass cuttings and intercrops account for approximately half of KTG's
biogas feedstock already today - and this share is set to rise further.
Siegfried Hofreiter says: 'Agriculture can help meet two vital challenges
of our time: secure food supplies and clean energy. These prospects benefit
our company as well as our investors.'
Key facts and figures of the corporate bond
Volume: up to EUR 50,000,000
Subscription period: 7 June 2011 to 16 June 2011
Term: 6 June 2011 to 5 June 2017
Interest rate: 7.125% p. a.
Denomination: EUR 1,000
Minimum investment: EUR 1,000
ISIN: DE000A1H3VN9
Issue price: 100%
Redemption price: 100%
Type of security: Partial bearer bond
Listing: Entry Standard of the Frankfurt Stock Exchange
Legally relevant prospectus available for downloading: www.ktg.ag
Bond information hotline: phone 0800 8986262 (free for calls originating in
Germany)
About KTG Agrar:
With cultivable land of more than 33,000 hectares, KTG Agrar AG is one of
the leading producers of agricultural commodities in Europe. The
Hamburg-based company's core area of expertise is the organic and
traditional cultivation of market products such as cereals, maize and
rapeseed. For organic market products KTG Agrar is the European market
leader. The company mainly produces in Germany but has also operated
production in the EU full member state of Lithuania since 2005. The third
mainstay is the production of bio-energy. At present, KTG Agrar operates
biogas plants with a total capacity of around 16 megawatts. In the year
2010, KTG achieved a total output of EUR 70.8 million and EBIT of EUR 13.4
million. Since November 2007 the company is listed on the Frankfurt Stock
Exchange and has currently about 250 employees. Further information can be
found at www.ktg.ag.
Contact:
Investor Relations / Press
Fabian Lorenz
IR.on AG
Phone: +49 221 914097 - 6
E-mail: fabian.lorenz(at)ir-on.com
End of Corporate News
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06.06.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: KTG Agrar AG
Ferdinandstr. 12
20095 Hamburg
Deutschland
Phone: +49 (0)40-303 76-47
Fax: +49 (0)40-303 76-799
E-mail: info(at)ktg-agrar.de
Internet: www.ktg-agrar.de
ISIN: DE000A0DN1J4
WKN: A0DN1J
Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart;
Open Market (Entry Standard) in Frankfurt
End of News DGAP News-Service
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127477 06.06.2011
Datum: 06.06.2011 - 07:55 Uhr
Sprache: Deutsch
News-ID 34310
Anzahl Zeichen: 0
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Kategorie:
Business News
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