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$100 million loan to Animex group to boost Polish meat processing
A $100 million loan will enable the Animex group to improve the financial structure and efficiency of its Polish meat-processing operations. The transaction was arranged by Rabobank Polska, which will provide financing of $50 million, while the European Bank for Reconstruction and Development lends $25 million and BRE Bank lends $25 million.
Animex's majority shareholder is Smithfield Foods, Inc. (SFD/NYSE), the leading producer of fresh pork and processed meats in the United States. "This financing, which includes working capital to improve operations, is a key component to restoring the financial health of the Animex group," said Richard J.M. Poulson, Chairman of the Supervisory Board of Animex and Vice President of Smithfield. "In addition, it reconfirms Smithfield's long-term commitment to Poland." To secure the financing, Smithfield has guaranteed repayment of the entire $100 million.
The companies in the Animex group participating in the transaction are Animex Agro-Hand Sp. z o.o., Zaklady Miesne Agryf Sp. z o.o., Animex-Poludnie Sp. z o.o., Animex-Zaklady Pierzarski Sp. z o.o., Zaklady Miesne Constar S.A., Ilawskie Zaklady Drobiarskie Ekodrob S.A., Suwalskie Zaklady Drobiarskie Sp. z o.o., and SF Holding Sp. z o.o.
This transaction is one of the largest for Rabobank Polska, which applied its global experience in the food and agriculture sector. The financing of one of Poland's largest meat processors should have a positive impact on Polish agriculture as a whole. Rabobank added that the transaction is an important element in the process of adjusting Polish agriculture to EU standards.
Hans Christian Jacobsen, Director of the EBRD Agribusiness Team, noted that agriculture is one of the Polish economy's most vital sectors, and that the transaction will support the long-term competitiveness of the Polish pork processing sector through improved efficiency and food safety.
The EBRD has signed 135 transactions in food processing and distribution with a total commitment of more than
€2.3 billion throughout central and eastern Europe.
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