Ktg Agrar defies the euro crisis and secures growth financing

- Equity capital of roughly EUR 100 million
- Medium-term financing leads to improved purchasing conditions and
better rating
Hamburg, 14 February 2013. 'We are of the opinion that the uncertainty
surrounding the euro is having a material impact on the planning and
financing certainty of Germany's small and medium-sized enterprises. In
response to this situation, we have issued a bond that will secure the
growth financing and liquidity of KTG Agrar AG,' says Siegfried Hofreiter,
CEO of KTG Agar AG. 'This gives us planning certainty. We believe that
forward-looking liquidity planning is a key priority for an innovative
company.' KTG Agrar AG, one of the leading agricultural companies in
Europe, has therefore increased its equity capital and its medium-term bond
capital with a view to securing its profitable growth in the long term.
Following a 10 percent capital increase in early February, the planned
placement of 2 million shares in KTG Energie AG has also been completed
successfully; thereby unlocking more value. In addition, the company
successfully increased its corporate bond (ISIN: DE000A1H3VN9), which
carries a coupon of 7.125 percent and will mature on 5 June 2017, by EUR 80
million and placed it with institutional investors. The issue was managed
by youmex Invest AG, Frankfurt. The offering price amounted to 100 percent.
The equity ratio has climbed above 25 percent and thus exceeds the ratio
published in the interim financial statements for the period ended 30 June
2012.
'We are pleased about investors' great interest in our company. It shows
that our integrated business model - from the field to the plate - is the
right way forward. The combination of investments in farmland and biogas
plants as well as the production of food from the field to the plate holds
huge potential,' says Siegfried Hofreiter, the company's CEO. KTG Agrar AG
operates in capital-intensive sectors. Capital is tied up not only in the
biogas feedstock inventories but also in parcels of land acquired as part
of our farmland expansion which aims to create larger contiguous - and
hence, more valuable - fields. Says Siegfried Hofreiter: 'The medium-term
bond not only allows us to respond more swiftly as attractive investment
opportunities arise and to reduce our interest expenses, but the longer
maturity also improves our rating.' Creditreform Rating AG confirmed its
BBB investment grade rating for KTG Agrar in October 2012.
This week will see the KTG Agrar Group exhibit at the 'Biofach' show, the
world's largest trade fair for organic food. Three KTG brands will be
presented to an international audience, namely FZ Foods (frozen food), BZ
Bio-Zentrale and Erde-Gold Frischeprodukte. Consumers want safe and
transparent food production 'from the field to the market'. 'We are pleased
about the extremely positive response to our brands and are seeing much
higher consumer demand for our controlled regionally grown food,' says Ulf
Hammerich, KTG Agrar's Board member in charge of the farming segment.
About KTG Agrar
With cultivable land of more than 38,000 hectares, KTG Agrar AG (ISIN:
DE000A0DN1J4) is one of the leading producers of agricultural commodities
in Europe. As an integrated supplier, the company produces agricultural
commodities and renewable energy and food. 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 member state of
Lithuania since 2005. As a result of the takeover of Frenzel Tiefkühlkost
in 2011, KTG has expanded the value chain by the production of food. In the
year 2011, KTG achieved a total output of EUR 112,1 million and EBIT of EUR
15,0 million. Since November 2007 the company is listed on the Frankfurt
Stock Exchange and has currently about 600 employees. Further information
can be found at www.ktg-agrar.de.
Contact
Investor Relations / Presse
Fabian Lorenz
IR.on AG
Phone: +49 221 914097-6
E-mail: fabian.lorenz@ir-on.com
End of Corporate News
Unternehmen: KTG Agrar AG - ISIN: DE000A0DN1J4