LONDON, UK: Cordiant Global Agricultural Income Plc announced intention to undertake an initial public offering (IPO) of its shares and will seek admission of its ordinary shares to the premium listing segment of the Official List of the FCA and to trading on the Main Market of the London Stock Exchange.
The company is targeting an issue of 300 million ordinary shares at an issue price of S$1.00 per ordinary share through a placing, offer for subscription and subscription share issue.
Cordiant Global Agricultural Income Plc’s investment objective will be to seek to provide an attractive yield, with potential capital growth, by providing secured medium-term finance to the global agricultural sector.
The Company will target a dividend of 6.5 per cent per annum and a NAV total return of 10 per cent per annum once fully invested, with inflation protection through floating rate loans (the Company intends to pay a 4 per cent dividend in the first 12 months following IPO).
The company will seek to promote more sustainable crop production and help address a capital solutions gap which exists in the agricultural sector in select regions.
Cordiant Global will provide finance for crop inputs and for capital investment in new technologies and infrastructure which help increase crop yields and have a sustainable benefit.
Finance will be provided to medium to large-scale producers of soft commodities, fruits and vegetables with long track records, who export, and will be re-paid directly from international, typically investment grade, counterparties such as supermarket groups, large food wholesalers and commodity traders through off-take agreements which are agreed at the point of entry into the loan (Agricultural Loans).
A strong package of security and collateral over land and crops will be taken in respect of each Agricultural Loan, ensuring for a highly secured investment.
Cordiant Capital Inc., which manages c.US$3.4 billion across three core strategies, digital infrastructure, agricultural finance and renewable energy infrastructure, will act as investment manager to the company.
Benn Mikula, Co-CEO and Head of Investments at Cordiant Capital, said: “Feeding a growing global population whilst protecting the environment is one of the defining challenges of our age. By focusing on established producers with strong sustainable farming methods, Cordiant can deploy its sector expertise to increase food security and generate attractive investor returns.”
Patrick Funaro and Cédric Garnier-Landurie, Managing Directors of Cordiant Capital and key principals of the Agricultural Finance Investment Team, said: “The need for more sustainable and productive farming globally is a matter of increasing importance, particularly in major exporting regions such as Latin America where farmers suffer from a lack of credit. Our strategy gives medium to large-scale farmers’ access to long-term finance for sustainable agricultural technology investments such as drip-feed irrigation on attractive terms, increasing yields and reducing environmental impacts.”
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