St Helier, Jersey, 2012-07-11 11:30 CEST (GLOBE NEWSWIRE) --
Black Earth Farming Ltd (“BEF”) has obtained a USD 25 million credit facility from its two major shareholders Kinnevik New Ventures AB and Vostok Nafta Investment Ltd (via its wholly owned subsidiary Vostok Komi Cyprus Limited) to fund working capital needs. The seasonality of the farming business involves large working capital outflows prior to harvest and until sales of new crop commences during the second half of the calendar year. BEF has sought to finance these short term cash outlays in the most cost efficient manner possible and has opted to accept credit lines of USD 12.5 million each from its two largest shareholders Kinnevik and Vostok Nafta, who together own 49.7% of the outstanding shares. The facility is unsecured, carries an annual interest rate of 11% and matures in June 2013. BEF can however at its sole discretion prepay the entire loan at any time prior to the maturity date.
For additional information, please contact:
Erik Lystedt, Director of Investor Relations, Black Earth Farming Ltd., tel: +44 (0) 2071 178 100
Notes to Editor:
Black Earth Farming Ltd. is a leading farming company, publicly listed on Nasdaq OMX Stockholm and operating in Russia. It acquires, develops and farms agricultural land assets primarily in the fertile Black Earth region in southwest Russia. Black Earth Farming has gained a strong market position in the Kursk, Tambov, Lipetsk and Voronezh areas, controlling some 318,000 hectares of what perhaps is the world’s most fertile soil.
In 2011 Black Earth Farming harvested over 230,000 hectares, effectively making it one of the world’s largest public farming companies by cropped area. The Company’s main products are wheat, barley, sunflower and rapeseed.
Corporate website: www.blackearthfarming.com
