Agricultural business services by Finacom Investment House Limited

.:Company News:.
24/04/08 Finacom advices on US$142 million facilities

Article appeared in The Times Business, April 24, 2008.
Guardamanġia-based firm Finacom Investment House Ltd acted as advisor to Agrenco Group in Brazil to arrange a four different secured prepayment facilities amounting to $142 million.
The loan will finance the warehousing and processing of non-GMO Brazilian soybeans, soy-meal and soy-oil for the 2008/9 crop. On the advice of Finacom, Agrenco's subsidiaries mandated WestLB AG to act as sole arranger and lender.
"The success of this loan refinancing demonstrates the continuing international banking confidence in Finacom and its clients and in the Brazilian economy," Finacom's chief executive Patrick Zrinzo said.
Finacom is the financial and treasury arm of Agrenco Group, which is based in Brazil.
15/04/08 Agrenco in successful IPO

Article appeared in The Times Business, April 15, 2008.
Agrenco, whose financial and treasury arm operates from Malta and is situated at The Park Lane Buildings, G’Mangia, has just concluded a successful primary IPO and is pursuing the consolidation of its position in the market as a services and integrated solutions provider to agrobusiness.
“We have entered a new stage, not only in terms of consolidation, growth and accomplishment of our projects and ideas, but also to adapt ourselves ever further to corporate governance requirements and other requirements of being a publicly-held company”, said CEO Antonio Iafelice. In the global market, Agrenco integrates unique agribusiness services and products, in addition to providing clean technology with carbon credits.
The results of 2007’s last quarter show the group’s accelerated growth. Gross income amounted to R$89.6 million (Euro33.5million), showing an increase of 340% year-on-year, totaling R$196.6 million (Euro 73.5million) in September 2007, a growth of 65% as compared to September 2006.
“Agrenco’s first results’ disclosure looks very healthy. We have prepared Agrenco for this period in the Group’s development by organising it entirely. This includes the accounting, financial and economic areas, as well as the structural, business and other sectors to enable the company to go public. Today, as Agrenco is fully structured and properly capitalised, we are ready to grow even further,” said Iafelice.
During Q1/2008, Agrenco opened one of the three planned biodiesel production complexes. Two of these plants include soybean crushing plants will also generate electric power. All three plants will be using state-of-the-art technology developed by Agrenco itself. Located in the Brazilian cities of Alto Araguaia (MT), Caarapá (MS) and Marialva (PR), the plants are estimated to have a total production capability of 425 million litres of biodiesel and of 320,000 MWh per year of electricity. The latter will be sold to the electric network, in addition to producing 1,050,000 tonnes of soy bran.
30/03/08 Agrenco concludes IPO and gets market ready for 2008

Article appeared in The Independent on Sunday, March 30, 2008.
Agrenco’s financial and treasury arm, which operates from Malta and is located at The Park Lane Buildings, Guardamangia, has just concluded another important process in its history: a successful primary IPO.
When the opening bell chimed for the company’s BDRs at the São Paulo Stock Exchange, Agrenco was already capitalised and pursuing the consolidation of its position in the market as a services and integrated solutions provider to agribusiness.
The results of 2007’s last quarter show the group’s accelerated growth. Gross income amounted to R$89.6 million (€33.5million), showing an increase of 340 per cent year-on-year, totalling R$196.6 million (€73.5million) in September 2007, a growth of 65 per cent when compared to September 2006.
Agrenco’s financial and treasury arm, which operates from Malta and is located at The Park Lane Buildings, Guardamangia, has just concluded another important process in its history: a successful primary IPO.
When the opening bell chimed for the company’s BDRs at the São Paulo Stock Exchange, Agrenco was already capitalised and pursuing the consolidation of its position in the market as a services and integrated solutions provider to agribusiness.
The results of 2007’s last quarter show the group’s accelerated growth. Gross income amounted to R$89.6 million (€33.5million), showing an increase of 340 per cent year-on-year, totalling R$196.6 million (€73.5million) in September 2007, a growth of 65 per cent when compared to September 2006.
During Q1/2008, Agrenco opened one of the three planned biodiesel production complexes. Two of these buildings include soybean-crushing plants that will also generate electric power. All three plants will be using state-of-the-art technology developed by Agrenco itself. Located in the Brazilian cities of Alto Araguaia (MT), Caarapá (MS) and Marialva (PR), the plants are estimated to have a total production capability of 425 million litres of biodiesel and of 320,000 MWh per year of electricity. The latter will be sold to the electric network, in addition to producing 1,050,000 tonnes of soy bran.
03/02/08 Agrenco focuses on energy

Article appeared in The Independent on Sunday, February,03 2008.
Agrenco, whose financial and treasury arm operates from Malta at The Park Lane Buildings in Guardamangia, is restructuring and is transferring its board of executives, located until now in parts of Europe and Brazil, to Switzerland. The idea is to unify the different operation areas in Geneva.
Agrenco’s executive board met earlier this month to discuss new strategies and challenges, foremost among them investments in biofuels and energy. Depending on environmental licensing, the group is also planning to start operating its first biodiesel plant in Brazil as from March this year. By end 2008, Agrenco should also start operating another two plants. The three complexes will have an estimated production capacity of 450 million litres of biodiesel per year, with an investment of $150 million.
Agrenco also expects to sell carbon credits in the international market, with the replacement of dirty energy for clean energy. If the entire production capacity is used, the plants will no longer emit one million tonnes of CO2 per year. Agrenco is currently awaiting the approval of the methodology for biodiesel projects.
The company’s revenue for last year has been estimated at US$1.5 billion.
Earlier this month, Dr Robert A. Swick was appointed Agrenco’s new protein consultant. Together with the team, he will help develop the market for the distribution of Agrenco products, especially soybean bran.
12/07/07 Agrenco celebrates 10 years in Brazil

Article appeared in The Times Business, July 12, 2007.
The Agrenco agro-industry group, which currently holds a presence in 10 countries in the Americas, Asia and Europe, including Malta, has celebrated its 10th year of operations in Brazil.
Patrick Zrinzo, chief executive of Finacom, Agrenco's Malta-based financial and treasury arm attended celebrations which included group activities, talks, presentations and leisure periods. Xico Ramos, director of institutional relations at Agrenco, said, "We developed projects for companies that did not have the same type of logistics profile that the multinationals had in Brazil. Everything happened very fast. So fast, that even today we cannot keep up with the pace of growth."
Group CEO Antônio Iafelice spoke about the current situation and expectations of the company.
"What the company needs right now is to restructure itself better from a corporate point of view." He cited how Terlogs, the group's logistics division has successfully restructured its processes and systems and today is considered as a low cost service provider.
Team building experiences were delivered by Max Gehringer, specialist in marketing and corporate consultant. Integration between Agrenco Groups's various sectors is considered as one of the next corporate challenges by the group
22/03/07 Agrenco in new energy plants

Article appeared in The Times Business, March 22, 2007.
Global Dutch-headquartered grain and oilseed trading firm Agrenco has teamed up with industrial giant Japanese Marubeni Corporation to invest in clean energy from renewable sources. Under the agreement, Marubeni will invest $40 million in Agrenco Bioenergia, a company of the Agrenco Group fully dedicated to bioenergy production.
Agrenco is planning to start construction on two of its three planned biodiesel plants in Brazil later this month, Finacom, Agrenco's Malta-based financial and treasury arm said. Finacom is currently working on finance for these projects.
19/07/06 Agrenco ranked 9th in Brazil

Article appeared in The Malta Business Weekly, July 19, 2006.
Agrenco do Brasil S.A, whose financial and treasury arm Finacom operates in Malta has been ranked among Brazil's top 10 companies in the wholesale and international commerce sector according to a research performed by Exame magazine in this year's edition of Maiores e Melhores. The company reached the ninth position in 2006's survey with a total sales volume (income) of US$399.5m in 2005 and profitability 28.1 per cent higher compared to last year. Maiores e Melhores is getting strength as one of the most precise screenshots taken of the Brazilian business sector since 30 years ago.
Besides income and profitability, the magazine has analysed other items, such as net profit, liquidity, patrimony, built wealth, wealth generated by employees and applications in fixed assets. Agrenco's net earnings in 2005 reached US$14.4m and net equity amounted to US$51 m. Agrenco still appears in the 49th position among the 50 largest export companies in sales amount.
In sub-rankings that were also used to classify companies, Agrenco is in the fourth position regarding its investments on fixed assets and also in the fourth position in profitability ranking. Fixed assets investments figures are obtained using as basis the resources origin and applications of company's resources, and it is considered a good indicator of business expansion. Otherwise, the profitability factor is the main indicator of corporate excellence, because it measures the feedback of investments for stockholders. In order to come out with 'this value, the survey considered the company's profits which have been distributed in the working year and profits over company's own capital.
The publication Maiores e Melhores of Exame magazine is annual and brings a list of the 500 biggest and most prestige companies in 71 economic sectors. This edition has analysed more than 3,000 balance sheets, counting on Brazil's Fundacao Instituto de Pesquisas Contabeis, Atuariais e Financeiras (Fipecafi) technical support. Sales amount of the 500 largest companies in Brazil totalised US$577bn in 2005 and profits raised 14.3 per cent to US$36.7bn.
13/07/06 Agrenco among Brazil's top 10 companies.
Article appeared in The Times Business, July 13, 2006.
Agrenco do Brasil S.A, whose financial and treasury arm Finacom operates in Malta, has placed in Brazil's top 10 companies in the wholesale and international commerce sector according to research performed by Exame Magazine in this year's edition of Maiores e Melhores. The company reached the ninth position in 2006's survey with a total sales volume (income) of US$399.5 million in 2005 and profitability 28.1 per cent higher to last year.
Besides income and profitability, the magazine analysed other items, such as: net profit, liquidity, patrimony, built wealth, wealth generated by employees and applications in fixed assets. Agrenco's net earnings in 2005 reached US$14.4 million and net equity amounted to US$51 million. Agrenco still appears in the 49th position among the 50 largest export companies in sales amount. Agrenco is in fourth position regarding its investments on fixed assets and also in fourth in profitability ranking.
Fixed assets investments figures are obtained using as basis the resources origin and applications of company's resources, and it is considered a good indicator of business expansion. Otherwise, the profitability factor is the main indicator of corporate excellence, because it measures the feedback of investments for stockholders.
In order to come out with this value, the survey considered the company's profits which have been distributed in the working year and profits over the company's own capital.
22/06/06 Finacom negotiates $30 million deal.
Article appeared in The Times Business, June 22, 2006.
Finacom Investment House of Guardamangia has negotiated a US$30 million partnership between its parent company Agrenco and Credit Suisse Brasil.
The five-year deal includes innovative credit lines on terms, conditions and pricing.
The agreement will enable Agrenco, a major agro-business group in Brasil, to improve its crop financing capacity by increasing the number of producers who work in partnership with it in many parts of Brasil and also give more flexibility to the company’s operations.
"Once our relationships with producers, raw material suppliers, logistical companies, and related suppliers have been enlarged and strengthened, Agrenco is now looking for support from financial institutions with are leaders in the market", said Pedro Lotti, CFO of Agrenco do Brasil S.A.
Finacom’s chief executive officer, Patrick Zrinzo, said this agreement was further proof of Finacom’s sound standing in the international lending markets. "It also demonstrates the continuing banking confidence in Finacom, Agrenco and Brasilian economy. Finacom is committed to expanding its resources and range of services to keep pace with the rapid transformation and business opportunities in Brasil’s booming economy," he said.
21/05/06 Agrenco one of 60 largest export companies in Brazil
Article appeared in Sunday Times, May 21, 2006.
The growth rhythm and trade volume presented by Agrenco do Brasil in past years have taken the company to 59th place among the 500 biggest export companies in Brazil. The ranking was published earlier this month in the Anuario Expressao Exportacoes, by Expressao Publishing.
It was based on official information provided by the Brazilian Secretariat of Commerce of the Ministry of Development, Industry and Commerce, Agrenco Group is represented in Malta by Finacom, its financial and treasury arm, situated at The Park Lane Buildings, Guardamangia.
The figures (expressed in dollars free on board US$ FOB) represent the period between January 1 and December 31, 2005, compared to the same period in 2004. In 2005, Agrenco's export volume amounted to $315.89 million FOB, growing 217.34 per cent compared to the same period in 2004 when the company exported $99.54 million FOB. Expert in qualified services for the agribusiness area, particularly in logistical, storage and distribution of grain around the world, Agrenco do Brasil changed its operational system in 2004, starting to sell integrated solutions for clients.
The shift enhanced the company's capability to deal with the whole process from product origination to cargo loading and shipment of grains. Now a ship can be fully loaded within 2.8 days on average, a significant advance compared to the 15 days needed before the implementation of the integrated solution system.
Apart from the efficiency in shipment operations, an agreement signed with the multinational Japanese group Marubeni was also important to increase Agrenco's business. The Japanese group, a giant in the agribusiness sector, acquired 25.5 per cent of Terlogs, the maritime terminal owned by Agrenco at the Port of Sao Francisco do Sul, opening a strategic path for the outflow of Brazilian production to Asia.
As a result, exports of $460 million to that continent correspond to half Agrenco's income in the past year.
05/04/06 Agrenco's revenue expected to be $1.5bn
Article appeared in The Malta Business Weekly, April 5, 2006.
Agrenco Group's revenue will be around $1.5bn in 2006. This was stated by Antonio Iafelice, Agrenco's president, in an interview with Bloomberg TV, broadcasted this week.
This profitable performance by this Franco-Brazilian group, which operates in the agrobusiness sector, is the result of services and logistic solutions as well as agricultural products distribution, from origin to the final consumer.
Agrenco is forecasting a final group net profit of $56m this year, before taxes.
Agrenco's president spoke also about investments. pointing out that the Group, along with growers and consumers, will invest $12Om this year.
The capital will be distributed among projects in the areas of bioenergy, logistics, development of protein concentrates to human consumption and ethanol.
About the ethanol, Iafelice – said that Agrenco is already negotiating with Asian companies to establish projects in Brazil to export the product to Asia.
"There is a huge interest abroad in ethanol," he says. "With the Kvoto Protocol, demand for clean fuels tends to grow in the international market, and as long as a service is demanded, we are interested," Agrenco's president stated.
Mr Iafelice also talked about the difficulties faced by Brazilian growers, who are suffering from a combination of a weak dollar and high interest rates.
"Growers in Brazil have to pay for a more expensive diesel oil than Argentines, for example, and the agricultural defensive products in the country cost three or four times more than in the United States," he said.
"Besides that, growers cannot have access to credit under reasonable interest rate."
30/03/06 Agrenco expects revenue of $1.5 billion
Article appeared in The Business Times, March 30, 2006.
The Franco-Brazilian Agrenco Group is projecting revenue of around US$1.5 billion in 2006, Antonio Iafelice, Agrenco's president said in an interview with Bloomberg TV.
The group is a global player in the agro business and handles its financial activities through a subsidiary in Malta - Finacom.
Mr Iafelice said the group, along with growers and consumers, will invest US$120 million this year. The capital will be distributed among projects in bioenergy, logistics, development of protein concentrates to human consumption and ethanol.
"There is a huge interest abroad in ethanol. In view of the Kyoto Protocol, demand for clean fuels is growing in the international market, and as long as a service is demanded, we are interested".
15/03/06 Agrenco's export performance highlighted
Article appeared in Business Today, March 15, 2006.
The Brazilian business newspaper, Valor Economico, has highlighted the export performance presented by Agrenco Group, including the company among a select group of 16 Brazilian companies which registered a strong growth in the external market last year, despite a weak dollar.
The Agrenco Group, which operates in the agrobusiness sector, is represented in Malta by Finacom, its financial and treasury subsidiary, of The Park Lane Buildings, G'Mangla.
The result presented by Agrenco Group is highly superior than the average Brazilian exports performance, which increased 22.6% in 2005, even with a strengthening of 13.4% of the Brazilian Real in the period.
Valor Economico reported that, last year, Agrenco Group increased its export by 217%, from US$ 99 million at the end of 2004, to US$315 million in 2005. The Group is expected to have a turnover of US$ 1.4 billion this year, with Agrenco do Brasil being responsible for half of it.
Specialised in providing services in the grains segment -logistics, warehousing and world distribution - Agrenco changed its method of operation at the end of 2004. It started to sell packages of integrated solutions to its clients. "Before, it used to take 15 days to load a soybean vessel. Today, our average loading rate is of 2.8 days," said Antonio Iafelice, global president of the group. "We are exploring a niche in a distinct way."
Combined to the loading efficiency, there Is another factor. Agrenco has closed a deal with the Japanese group Marubeni. The giant of the agribusiness has purchased 25.5% of Terlogs Terminal (located in Sao Francisco do Sul), opening the doors to Agrenco to place the Brazilian agricultural products in the Asian market. As a result, exports for that region totaled US$ 460 million, responding for half of Agrenco's revenue last year. 'We have a fast growing rate in Taiwan, Japan and South Korea. We proved that we had a good storage structure and, for the first time, Asia has purchased grains during the whole year, not only during the harvest period. We conquered market share more than the Americans," he said.
Although many exporters complained about 2005, at Agrenco nothing seemed so terrible. Even the problems caused by a drought in some Brazilian States, which shortened the crop, had a positive effect: it resulted in better market prices. And the losses caused by the currency rate were balanced by a somewhat bigger cut of costs.
"This way, a weak dollar has not affected at all our performance," said Iafelice. "The group's profit more than doubled In 2005, reached US$20 million."
15/03/06 Top Brazilian driver Martins makes debut in international competitions
Article appeared in The Malta Independent, March 15, 2006.
The official training for the 17th edition of the Andrea Margutti Trophy has started. This traditional international kart competition is considered an avant premiere of the World Championship, scheduled to come to an end on October 1, in Angercille (France).
This year, 238 pilots from 32 countries, divided in three categories, will gather in the Parma Kart Motordrome (Italy), looking to conquer a championship which once was in the hands of Giancarlo Fisichella – one of the great names of Italian kart in the 90's and today a Renault Formula One pilot.
Brazil has sent only one pilot to the Andrea Margutti's 2006 edition: Henrique Martins, supported by the Agrenco Group, who is 14 years old and is about to take part in his first international competition. "Never before a Brazilian has been able to win this championship and this is one of the major challenges of this new generation of Brazilian kart pilots", he says.
Agrenco Group, which operates in the agrobusiness sector, is represented in Malta by Finacom, whose offices are situated in The Park Lane Buildings, G'Mangia.
Henrique won the Sao Paulo State Championship in 2005, and is one of the more promising names of the Brazilian kart in the Junior category. Beyond the natural goal of persuading victory in the Andrea Margutti, he travelled to Parma aiming to get used to international competitions, which may be his focus on the next seasons. "Obviously I will get in the race track focusing victory, but to compete overseas is so different than competing in Brazil that the learning is also one of my goals", he adds.
16/02/06 Finacom's deal in Trade Finance
Article appeared in The Times Business, February 16, 2006.
A US$ 55 million deal arranged by Finacom Investment House of Guardangia to the Brazilian agribusiness was highlighted in the prestigious Trade Finance magazine. The magazine is the only truly global publication concentrating exclusively on the international trade finance market.
Trade Finance described how Finacom, acting as coordinating arranger to Agrenco, the Franco-Brazilian agro-business group, had arranged a one year secured pre-export finance facility for Inlogs International, which is an Agrenco subsidiary. This was the first time the company has approached the international syndicated loan market. HSH Nordbank, Commerzbank and KBC Group funded the loan.
Trade Finance magazine pointed out that "the US$ 55 million loan raises to US$ 80 million the amount of direct financing for grain production available to the Agrenco Group, in addition to another US$40 million provided through Finacom to cooperatives and other suppliers".
The total amount represents origination of 1.25 million tons of soybeans in the 2005-06 crop. The loan is linked to export contracts in Europe and Asia.
02/12/05 Maltese group arranges Brazil grain deal
Article appeared in GTR-Global Trade Review, 02 December 2005.
Finacom Investment House of G'Mangia, Malta has acted as coordinating arranger to the Agrenco Group in Brazil to arrange a one-year secured pre-export finance facility to Inlogs International. The facility represents Inlogs’s first approach to the international syndicated loan market.
With the syndicated loan of US$55mn, Agrenco Group raises to US$80mn the amount of direct financing for grain production. Added to another US$40mn provided through Finacom to cooperatives and other suppliers, the total amount represents origination of 1.25mn tons of soybeans in the 2005-06 crop. This loan is linked to export contracts for clients in Asia and Europe.
As a consequence of market practices, Agrenco Group has 2mn tons of soybeans guaranteed for next crop, to be originated in Mato Grosso, Mato Grosso do Sul, Parana and other states.
The credit of US$55mn was achieved through a pool of European banks, led by Germany's HSH Nordbank, including Commerzbank and KBC Group, from Belgium. The operation was structured by Finacom, Agrenco's financial subsidiary, based in Europe.
"Demand for special soybeans has been growing, that is why we decided to invest more in crop financing," says Pedro Lotti, Agrenco Group's CFO. The holding, although based in Seynod, France, has a Brazilian accent, because it is managed by Antonio Iafelice, a Brazilian entrepreneur who is also its biggest stakeholder. "We had not found difficulties to obtain this loan. To tell the truth, the credit offered by the banks was larger, but we decided to assume a conservative position," says Lotti.
With this rise in crop financing, Agrenco expects to achieve a revenue of US$733mn this year, an amount 60% larger than in the last year.
"Brazil is one of the largest grain, coffee and sugar cane producers. A financial institution interested in support the agricultural sector can not remain out of here," says David Lopez Menendez, director of HSH Nordbank in New York. The bank, based in Hamburg, has assets of €165bn. Menendez says that Brazil is the second most important country in HSH's branch of agribusiness financing, only smaller than Germany , where its headquarters are located. The size of the investments in the agricultural sector in Brazil or in the world are strategic data, according to Menendez. "The agriculture is becoming more professional and is attracting many international banks", he says. The bank works mainly with export credit and financing crops in countries like China, Colombia , India and Vietnam .
Finacom's chief executive, Patrick Zrinzo, adds: "The diverse lending group is proof of Finacom’s sound standing in the international debt markets, and Malta’s reputation as a serious financial centre. The success of this loan financing demonstrates the continuing international banking confidence in Finacom and its clients and in the Brazilian economy. This is the second syndicate we have concluded this year – the first being another syndicate of US$50mn. As one of the leading companies in this sector, Finacom is committed to expanding its resources and range of services to keep pace with the rapid transformation and business opportunities in Brazil's booming economy."
"The oversubscription of the loan in the international banking market, at the senior and general syndication stages, the stature and geographic distribution of the bank group as well as the fine pricing of the loan are further confirmation of Finacom’s strong performance. We will continue to actively support other project financings as well as private sector initiatives," concludes Zrinzo.
29/11/05 Finacom Investment House advises Inlogs International multi-million syndicated loan
Article appeared in The Business Times, 29 November 2005.
Finacom Investment House Limited of G'Mangia acted as coordinating arranger to the Agrenco Group in Brazil to arrange a one year secured pre-export finance facility to Inlogs International. The facility represents Inlogs's first approach to the international syndicated loan market. With the syndicated loan of USD 55 million, Agrenco Group raises to USD 80 million the amount of direct financing for grain production. Added to another USD 40 million provided through Finacom to cooperatives and other suppliers, the total amount represents an origination of 1.25 million tons of soybeans in the 2005-06 crop. This loan is linked to export contracts for clients in Asia and Europe.
As a consequence of market practices, Agrenco Group has two million tonnes of soybeans guaranteed for next crop, to be originated in Mato Grosso, Mato Grosso do Sul, Parana and other Brazilian states.
The credit of USD 55 million was achieved through a pool of European banks, led by German HSH Nordbank and including Commerzbank and KBC Group from Belgium. The operation was structured by Finacom, Agrenco's financial subsidiary, based in Europe
"Demand for special soybeans has been growing, and this is why we decided to invest more in crop financing," says Agrenco Group's CFO, Pedro Lotti. Although based in Seynod, France, the holding has a Brazilian accent, because it is managed by Antonio Lafelice, a Brazilian entrepreneur, who is also its biggest stake holder. "We had not found difficulties to obtain this loan. In fact, the credit offered by the banks was larger, but we decided to assume a conservative position," said Lotti.
With this rise in crop financing, Agrenco Group expects to achieve a revenue of USD 733 million this year, an amount 60% larger than in the last year.
"Brazil is one of the largest grain, coffee and sugar cane producers. A financial institution interested in supporting the agricultural sector cannot remain out of here," says David Lopez Menendez, director of HSH Nordbank in New York. Based in Hamburg, the bank has assets of 165 billion euros. Menendez says that Brazil is the second most important country in HSH's branch of agribusiness financing, only smaller than Germany, where its headquarters are located. The size of the investments in the agricultural sector in Brazil or in the world is strategic, according to Menendez. "The agriculture is becoming more professional and is attracting many international banks," he says. The bank works mainly with export credit and financing crops in countries like China, Colombia, India and Vietnam.
Finacom's Chief Executive, Patrick Zrinzo, said: "The diverse lending group is proof of Finacom's sound standing in the international debt markets, and Malta's reputation as a serious financial centre. The success of this loan financing demonstrates the continuing international banking confidence in Finacom and its clients and in the Brazilian economy. This is the second syndicate we have concluded this year – the first being another syndicate of USD50m. As one of the leading companies in this sector, Finacom is committed to expanding its resources and range of services to keep pace with the rapid transformation and business opportunities in Brazil's booming economy."
"The oversubscription of the loan in the international banking market, at the senior and general syndication stages, the stature and geographic distribution of the bank group as well as the fine pricing of the loan are further confirmation of Finacom's strong performance. We will continue to actively support other project financings as well as private sector initiatives," concluded Zrinzo.
24/11/05 Finacom coordinates $55m syndicated loan
Article appeared in The Times of Malta, Business Supplement, 24 November 2005.
Finacom Investment House Ltd of Guardamangia has acted as coordinating arranger to the Agrenco Group in Brazil for a one-year, $55 million secured pre-export finance facility for crop financing.
The $55 million were raised through a pool of European banks, led by German HSH Nordbank and including Commerzbank and KBC Group from Belgium.
"Demand for special soybeans has been growing, and so we decided to invest more in crop financing," said Agrenco Group's CFO, Pedro Lotti. We did not find any difficulties in obtaining this loan. In fact, the credit offered by the banks was larger, but we decided to assume a conservative position." Finacom's chief executive, Patrick Zrinzo, said: "The diverse lending group is proof of Finacom's sound standing in the international debt markets, and Malta's reputation as a serious financial centre. The success of this loan financing demonstrates the continuing international banking confidence in Finacom and its clients and in the Brazilian economy. This is the second syndicate we have concluded this year - the first being another syndicate of $50 million. As one of the leading companies in this sector, Finacom is committed to expanding its resources and range of services to keep pace with the rapid transformation and business opportunities in Brazil's booming economy."
"We will continue to actively support other project financings as well as private sector initiatives," Mr. Zrinzo said.
15/11/05 Agribusiness sustainability highlighted
Article appeared in GTR-Global Trade Review, 15 November 2005.
Agribusiness sustainability, in terms of environmental, social and economic aspects, will become even more essential in the near future, and the companies that are able to provide differentiated and personalised services to their respective clients will conquer solid positions in a market that is increasingly demanding more quality every day.
These are the essential conclusions that emerged from an international seminar held by Agrenco Group, the Franco-Brazilian agribusiness group represented in Malta by Finacom Investment House of G'Mangia, in the Austrian capital Vienna.
Around 250 entrepreneurs, bankers, senior company and cooperatives executives, as well as buyers from South America, Europe and Asia, attended this seminar to discuss the latest global agribusiness trends.
The issue of traceability and sustainability programs for agricultural products imported into the European market was also discussed. As from January 2006 the EU will no longer tolerate imported agricultural products that do not strictly adhere with the EU's safety and quality regulations that are already applied to European food products.
In this regard, Agrenco announced a partnership with German company TÜV, to trace grains and meals from the origin to the final destination, in Europe.
Agrenco's president, Antonio Iafelice, states: "Concern about the food question was almost non-existent up to the mid 1970s but today the rules about food safety and sustainability are used in all international deals and commercial contracts. It is clear that the agribusiness sector's sustainability is only possible if there are investments in the infrastructure (especially in logistics), financial support backed with a proper risk management and the right technology that can overcome non-tariff barriers, preserves the environment, takes part in the social development and guarantees quality certification of both processes and products."
High calibre speakers at the event included Peter Goldsmith, from the agricultural and consumer economics department at University of Illinois; the chief analyst of Kottke & Associates, the consultant Ronald Anderson; and Filippo Galli, president of the Italian Grain Trading Association. The sessions were chaired by James Wright, coordinator of the Program for Future Studies at the University of São Paulo, Brazil.
Attendees included Société Générale, Commerzbank, HSH Nordbank, WestLB, HVB, Banco Santander, KBC Bank, Natexis Banques Populaires, UFJ Bank, Fimat, SMBC, and Deutsche Bank.
Asked about the feedback received by Agrenco from participants after the event, Iafelice says that it was extremely positive. "In general terms, the event has been a success for both Finacom and the group on various fronts. The seminar offered Agrenco the opportunity to meet some of our clients and many potential ones from several countries. It has given Agrenco the opportunity to show the market the strengths of our group as a whole and the good name Finacom has established for itself. Many of the bankers told us that they are ready to discuss opportunities we shall present to them. And, last but not least, it has shown that Agrenco is respected and admired for our service and professionalism."
Based in Brazil but with offices in Singapore, France, UK, Italy, Norway and Malta, Agrenco Group operates in the formulation and performance of personalised and integrated solutions for the whole cycle of production and destination of grain and oil seeds. Operations cover all stages of agribusiness: origination, financing for producers and buyers through international and Brazilian banking institutions, storage, logistics, freight, port operations, distribution and traceability, and evaluation of product and process quality, from the farmland to final destination.
Finacom is Agrenco's financing and bank relations subsidiary which deals with major international banking institutions. The Malta-based company specialises in structured operations and financial services, with competitive solutions for commodities in particular agricultural production and commerce.
Apart from Finacom, Agrenco's subsidiaries include Agrenco Brazil (purchase and sale of agricultural commodities), Inlogs (origination/logistics) Agrenco Shipping and Chartering (freight), IQS (quality control), Fertlogs (fertilisers), Agrenco Technology, Agrenco Singapore, Agrenco Italia, Agrenco UK and Agrenco France. Agrenco has 10 offices in Europe and Brazil and a portfolio of 300 active European clients with another 30 clients in Asia.
15/09/05 Agrenco results: Finacom doubles its trading.
Article appeared in The Times of Malta Business, 15 September 2005.
Agrenco Group, the Franco-Brazilian agro-business group represented in Malta by Finacom Investment House Limited of Park Lane Buildings, Guardamangia, has published its financial results for 2004. These show that Agrenco made a consolidated net profit after tax of US$8.46m (US$8.35m in 2003), reaching an EBTDA of US$11.5m. In 2004, the Group achieved a 160 per cent rise in operating revenue, established leadership in the field of structured products and reshaped its operating profile.
With regards to the Malta-based Agrenco subsidiary, Finacom, the company traded US$415m in 2004. This is more than double the US$200m traded by Finacom in 2003.
Based in Brazil but with offices in France, United Kingdom, Italy, Norway and Malta, Agrenco Group operates in the formulation and performance of personalised and integrated solutions for the whole cycle of production and destination of grain and oil seeds. Operations cover all stages of agribusiness: origination, financing for producers and buyers through international and Brazilian banking institutions, storage, logistics, freight, port operations, distribution and traceability, and evaluation of product and process quality, from the farmland to final destination.
The Group results were announced following a meeting of the Group’s board of directors, headed by president, Antonio Iafelice, who explained that "these results have to be seen in the context of a difficult environment for agriculture, including demand retraction and price volatility in freights and in soy".
Finacom is Agrenco's financing and banks' relations subsidiary, which deals with major international banking institutions. The Malta-based company specialises in structured operations and financial services, with competitive solutions for commodities in particular agricultural production and commerce. For the 2005 soybean crop, Finacom is supporting Inlogs (origination/logistics) to finance producers in the Brazilian region of Mato Grosso to the tune of US$43m. Mainly through Finacom, Inlogs finances the crops of soybeans with direct financial resources and raw materials and fertilisers, and subsequently takes charge for crop transport and export logistics.
In 2004, with the structured credit team of UFJ Bank in London, Finacom set up an innovative financing structure, combining three forms of payment. This involves a structured bilateral financing scheme lending US$20m to a large Brazilian agribusiness operator for exporting non-transgenic soybeans. The transaction involved following up the whole cycle of the crop up to exporting it, and was structured so as to finance the purchase of fertilisers, the produce and storage prior to export. The client used the fertiliser to support the first stage of the transaction, pre-crop finance (CPRs) for the second, and the soybean stock for the third form of payment.
Apart from Finacom and Inlogs, the other group subsidiaries include Agrenco Brazil (purchase and sale of agricultural commodities), Agrifreight (freight), IQS (quality control), Fertlogs (fertilisers), Agrenco Italia, Agrenco UK and Agrenco France.
"Today Agrenco can rely on a team operating under the same policy, rules and procedures in several parts of the world, with safety, interests and focus in the specific requirements of our customers and markets. In other words, we have a global management for local operations and solutions," said Mr Iafelice.
Based on such talents, Agrenco developed an innovative way of trading agro-products, capable of providing the producer with the opportunity to meet the customer, and to bring tailor-made products to the buyer. Agrenco traded 10 million tons of bulk and agricultural commodities in 2004, For 2005, their goal is to reach 12 million tons which represents an increase of 20 per cent over 2004.
Established in 1992, Agrenco has 10 offices in Europe and Brazil and a portfolio of 300 active European clients with another 30 clients in Asia.
24/02/05 Local finance company plays key role in global agro group
Article appeared in the Times of Malta Business, 24th February 2005.
Finacom, a subsidiary of the international Agrenco Group has raised US$65 million to finance soya bean producers in the 2005/06 harvest.
Last year it raised US$415 million in financing for other projects in the group and by various other clients.
Finacom, which has offices in Guardamangia, is the financial arm of the Agrenco and provides trade finance facilities to the group's clients in the agro sector and other clients that require such financing. Many of the Agrenco Group projects and business have been successful thanks to the Finacom, which has structured various trade credit lines for the companies in the group with large international banks such as Westlb, Vereins-Und Westbank, Fortis, UFJ, and ABSA.
Based in Brazil but with offices in Paris, United Kingdom, Italy and Malta, the Agrenco group specialises in the purchase and sale of agricultural commodities such as soya beans, maize, sugar, cotton and derivatives.
It has just announced a contract with state-owned China Grains and Oils for the sourcing and supply of between 200,000 and 500,000 tonnes of soya beans per year to China. It also recently agreed a partnership with Marubeni to sell grain in Japan and South Korea.
Agrenco President Antonio Iafelice said he expected the group to have a "direct" turnover of $600 million this year, from $415m last year. "Direct" turnover includes products monitored by the group from cultivation right up to delivery to clients.
Last month the group took over 40 per cent of the Denofa Norwegian grain processing plant (which includes a harbour), so as to further strengthen its position in Europe. Denofa is the only soya bean processor in Norway and the deal is valued at US$125 million.

			Client Login: Password: