DGAP-News: KTG Agrar has closed the corporate bond issue successfully
(firmenpresse) - DGAP-News: KTG Agrar AG / Key word(s): Bond/Issue of Debt
KTG Agrar has closed the corporate bond issue successfully
15.06.2011 / 15:16
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KTG Agrar has closed the corporate bond issue successfully:
The agricultural boom has just started
Hamburg, 15 June 2011 - The corporate bond with a volume of EUR 50 million
issued by KTG Agrar AG met with great interest on the part of institutional
and private investors. The issue was heavily oversubscribed already on the
first day. The company therefore decided to increase the issue by EUR 20
million and has placed it successfully today. Starting today, the
'Biowertpapier II' (ISIN: DE000A1H3VN9) will be traded at the Frankfurt
Stock Exchange in the Entry Standard for corporate bonds.
'We are very pleased with the great interest in agriculture, a sector with
a promising future, and with the confidence placed in our company,' said
Siegfried Hofreiter, CEO of KTG Agrar. 'We will primarily use the second
tranche to replace short-term liabilities.' The shift from short-term to
medium-term liabilities will reduce KTG's interest expenses while at the
same time allowing the company to respond swiftly to low prices on the
procurement side. For instance, the company will be able to buy fertiliser
for the coming season in the early summer, when prices are low, as the
proceeds from the harvest - and hence cash - are not yet available to the
farmers. KTG can use similar price fluctuations also for agricultural
machinery and seeds, thus increasing its profitability.
The first tranche serves to finance the company's growth in the biogas
segment as well as investments in farmland assets. KTG Agrar plans to
expand its farmland from 33,500 hectares to 50,000 hectares in the medium
term, with the percentage of company-owned land projected to climb to 25%.
Talks about additional farm and farmland takeovers are already under way.
At the same time, the company is expanding its production capacity for
renewable energy. KTG Agrar 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. The company
intends to increase its biogas production capacity to 25 - 30 megawatts by
the end of 2011. Plants with a capacity of seven megawatts are under
construction, with the construction of another four megawatts scheduled to
start in autumn of this year; additional approval procedures for up to ten
megawatts of capacity are already under way.
Says Siegfried Hofreiter: 'The bond issue will make it easier to plan our
corporate funding. We will now step on the gas. The agricultural boom has
just started an as the leading farming company will profit from that
heavily.' The food and agricultural organisation FAO of the united nations
has warned that the agricultural commodity prices will rise. This is due to
the fact, that low worldwide inventories and higher consumption in the
emerging markets face only a moderate rise of the production.
Legally relevant prospectus available for downloading at www.ktg.ag
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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15.06.2011 Dissemination of a Corporate News, transmitted by DGAP - a
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The issuer is solely responsible for the content of this announcement.
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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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128652 15.06.2011
Datum: 15.06.2011 - 15:16 Uhr
Sprache: Deutsch
News-ID 34387
Anzahl Zeichen: 0
contact information:
Kategorie:
Business News
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