DFF - Agricover Working Capital



Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

16 Jun 2020



PSD disclosed:

26 Jun 2020

As permitted by paragraph 2.6 of Section III of the Access to Information Policy, disclosure of this PSD was deferred in accordance with paragraph 1.4.4 of the Directive on Access to Information.

Project Description

This project was approved in the context of the Bank's response to the Covid-19 pandemic. To avoid delays to the delivery of this project, the Bank's President granted a deviation from the ordinary timelines for PSD disclosure, as contemplated by Section V of the Directive on Access to Information. Details of the Bank's response to Covid-19, and this deviation, can be found on our website.

The provision of a senior loan of up to EUR 10 million to Agricover SA, a locally owned leading distributor of agricultural inputs in Romania, for financing the working capital needs. 

Project Objectives

The project will support a private sector company in the agribusiness sector in Romania. It will enable Agricover SA, a distributor of agricultural technologies, to continue its growth strategy and finance potentially higher working capital needs triggered by the Covid-19 crisis.

Transition Impact

ETI score: 75

The transition impact for this project is aligned with the Bank's Covid-19 Solidarity Package, which adopts a streamlined rating approach. The Project is proposed to safeguard the transition impact objectives of the previous transactions with the client: (i) support the expansion of the client's regional coverage and customer base, and (ii) improve standards of corporate governance and business conduct.

The present transaction will provide additional liquidity for working capital to sustain potentially a longer cash conversion cycle. The project will also support the company to continue to grow its customer base and enable it to provide better commercial credit terms to its clients, small and medium-sized farms.

Client Information


Agricover SA is a leading distributor of agricultural technologies (crop protection products, certified seeds, plant nutrition and fuel) with operations at a national level in Romania. The major shareholder of Agricover SA is Agricover Holding SA (99.99%; the Group), a major player in the Romanian agricultural sector, offering agribusiness and financial services to farmers through an integrated business model.

The Group is ultimately controlled by its founder, Mr. Jabbar Kanani. In late 2017, EBRD injected RON 32 million (EUR 7 million equivalent) in the Group's share capital for a 12.7% stake and 2018 saw the approvalof the first loan to its financial subsidiary, Agricover Credit IFN (EUR 15 million, in RON equivalent, accessible in two tranches). Earlier this year, EBRD approved the second loan of EUR 5 million (in EUR or RON equivalent) to Agricover Credit IFN.

EBRD Finance Summary

EUR 10,000,000.00

Working capital facility of EUR 10 million.

Total Project Cost

EUR 10,000,000.00

Sources Total: EUR 10,000,000

EBRD financing: EUR 10,000,000


The financing from the EBRD bridges a financing gap and allows the client to continue its activities without major difficulties and have an appropriate liquidity buffer by sustaining potentially a longer cash conversion cycle resulted from the current Covid-19 crisis. The financing will support the extension of the payment period to customers, which will also support Agricover's clients. 

Environmental and Social Summary

Categorised B. The activities of Agricover SA are associated with a limited range of environmental and social (E&S) impacts. Agricover Group is an existing client of the Bank, through several projects, and its performance to date on the management of E&S issues has been largely satisfactory. Through the equity investment in the Group, a comprehensive Environmental and Social Action Plan (ESAP) was agreed to cover E&S management, health and safety, pollution prevention, health and safety, and stakeholder engagement. Within each of the Group's subsidiaries, individuals have been nominated as holding responsibility for environmental, health & safety, and labour management and the Group has systems in place to ensure compliance with national requirements for environment, health & safety, and labour management. In light of some changes in the Group's activities, and the Covid-19 crisis, some adjustments to the ESAP will be required but this will be done in the context of the review of annual reporting on the equity investment and will continue to provide sufficient coverage of E&S issues for Agricover SA. No additional requirements will therefore be required for this specific project. Agricover SA will be required to continue to comply with the Bank's Performance Requirements and to provide the Bank with annual reporting of E&S issues.

Technical Cooperation and Grant Financing


Company Contact Information

Delia Matei
1B Pipera Blvd, Cubic Center Office Building, 6th Floor, Voluntari, County Ilfov, Romania, 077191

PSD last updated

26 Jun 2020

Understanding Transition

Further information regarding the EBRD’s approach to measuring transition impact is available here.

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

Environmental and Social Policy (ESP)

The ESP and the associated Performance Requirements (PRs) set out the ways in which the EBRD implements its commitment to promoting “environmentally sound and sustainable development”.  The ESP and the PRs include specific provisions for clients to comply with the applicable requirements of national laws on public information and consultation as well as to establish a grievance mechanism to receive and facilitate resolution of stakeholders’ concerns and grievances, in particular, about environmental and social performance of the client and the project. Proportionate to the nature and scale of a project’s environmental and social risks and impacts, the EBRD additionally requires its clients to disclose information, as appropriate, about the risks and impacts arising from projects or to undertake meaningful consultation with stakeholders and consider and respond to their feedback.

More information on the EBRD’s practices in this regard is set out in the ESP.

Integrity and Compliance

The EBRD's Office of the Chief Compliance Officer (OCCO) promotes good governance and ensures that the highest standards of integrity are applied to all activities of the Bank in accordance with international best practice. Integrity due diligence is conducted on all Bank clients to ensure that projects do not present unacceptable integrity or reputational risks to the Bank. The Bank believes that identifying and resolving issues at the project assessment approval stages is the most effective means of ensuring the integrity of Bank transactions. OCCO plays a key role in these protective efforts, and also helps to monitor integrity risks in projects post-investment.

OCCO is also responsible for investigating allegations of fraud, corruption and misconduct in EBRD-financed projects. Anyone, both within or outside the Bank, who suspects fraud or corruption should submit a written report to the Chief Compliance Officer by email to compliance@ebrd.com. All matters reported will be handled by OCCO for follow-up. All reports, including anonymous ones, will be reviewed. Reports can be made in any language of the Bank or of the Bank's countries of operation. The information provided must be made in good faith.

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form.

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM  via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.


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