VTB Bank has opened two credit lines worth a total of RUB 3 billion for AFG National. One of the credit lines is a RUB 2.5 billion five-year facility to finance a potato farm project in the Nizhny Novgorod, Novgorod and Rostov regions. The second line of credit, worth RUB 500 million, will finance an investment programme over a period of three years to grow fruits and cereals. That loan will also finance working capital of the group’s facilities in the Krasnodar Region and St. Petersburg.
Yuri Soloviev, First Deputy President and Chairman of VTB Bank Management Board, said: “The current demand for project financing in agriculture is higher than ever, which contributes to the increasing competitiveness in the domestic market. Through our work with AFG National, we support Russian companies which operate a full-cycle operation, from production to sales, and actively participate in the import substitution programme.”
AFG National is a major vertically integrated field-to-counter agro-industrial holding company. AFG National has over 70,000 hectares of agricultural land, of which more than 50,000 hectares are used to grow rice. With 22 percent of the market, the company is the leader in rice growing and processing and a leading producer of packaged cereals in Russia (18 percent of the market). Since 2015, the company has been successfully expanding its vegetable-growing business. AFG National produces about 220 food items under its own or private labels. The company has an extensive distribution network in Russia, the CIS countries, Europe and other regions.