MANILA, Philippines - Listed fruit and vegetable grower Agrinurture Inc. is receiving a P335-million capital infusion from asset management firm Black River Capital Partners Food Fund Holdings (Singapore) Pte. Ltd. to enhance its farming and manufacturing operations.
The company disclosed to the local bourse that it is issuing convertible bonds to Black River with a face value of P335 million at an interest rate of three percent per annum and a term of 36 months from the issue date.
Jennifer Ong, Agrinurture assistant corporate secretary and information officer, said the fresh capital infusion by Black River would be used for farm development and improvement of the company’s manufacturing operations.
“The conditions for the conversion (to equity) will be finalized upon execution of the definitive agreements and transaction documents,†she said.
Black River currently owns 28.11 percent of Agrinurture.
Ong said the percentage of ownership of Black River in Agrinurture post conversion would depend on the finalized conditions for conversion, particularly the conversion rate.
Black River Capital Partners Food Fund Holdings (Singapore) Pte. Ltd. is a subsidiary of Black River Capital Partners Fund (Food), LP which is managed by Black River Asset Management LLC (BRAM).
BRAM, in turn, is a subsidiary of US-based commodities giant Cargill Inc.
Agrinurture registered a 3.7- percent decrease in profits in the first nine months of the year on higher cost of sales and operating expenses.
In a regulatory filing, the company disclosed that its profit for the period fell to P155.33 million from the P161.336 million recorded in the same period last year.
Net sales grew 18 percent to P2.77 billion from P2.35 billion last year. The company attributed the sales growth to the acquisition of new business units, increased exports and increased domestic sales.