Sojaprotein AD, the biggest soy bean processor in the Balkans, will borrow 110 million euros ($150 million) from units of Societe Generale SA and UniCredit SpA for refinancing, as it shifts to higher-value products.
UniCredit Bank AD is to lend 60 million euros over six years, including a 12-month grace period, at three-month Euribor plus 4 percent annual interest, while contracts with Societe Generale Bank AD include a 40 million-euro, two-year loan and a 10 million-euro loan over 12 months, at 4.25 percent over three-month Euribor and at one-month Euribor plus 3.9 percent respectively, the Novi Becej, Serbia-based company said in a statement after a shareholder’s meeting yesterday.
“The financing will support their transition from soybean meal for animal feeds to higher-margin, soy-protein concentrate,” Milos Bijanic, an analyst at Sinteza Invest Group brokerage in Belgrade, said by phone. “They are also looking at replenishing stock of soy beans because this year’s prices are lower” than last year when a drought hurt the harvest.
Sojaprotein opened a soy-protein concentrates plant last year and sees it reaching full annual capacity of 70,000 tons in 2014, the company said earlier this year. It turned to a 271 million-dinar ($3.2 million) consolidated net loss in the first half from a 269 million dinar net income a year earlier.
As much as 42 million euros of the total may be used by Victoria Logistic DOO and Victoriaoil AD, fellow members of Victoria Group AD, which controls Sojaprotein, the company said. Sojaprotein’s shares gained 2.24 percent to 684 dinars in Belgrade today, according to data compiled by Bloomberg.