EFKO to receive 10 bln rubles from RDIF, Mubadala, other investors for expansion

Interfax, 10.11.2016

MOSCOW. Nov 10 (Interfax) - The Russian Direct Investment Fund (RDIF), UAE's sovereign fund Mubadala and a number of other RDIF partners have signed an agreement on the preparation of joint investments of 10 billion rubles in EFKO Group of Companies.

The leading Russian producer of oil and fats products will use the money to finance long-term growth, including entry onto new markets of the CIS, Middle East and Asia, RDIF said in a statement.

EFKO belongs to Russia's top three largest agricultural-industrial companies and has port infrastructure in the form of the only deep-water sea terminal for handling vegetable oils in the port of Taman, which is allowing the group to the be the largest operator of import-export operations on the oils market, RDIF said.

The fund said that the consortium of investors has completed the transaction documentation for the deal on investing in AFG National Agro Holding, which enzetges in the production and distribution of rice, vegetable growing and orchards. The joint investments of RDIF, Mubadala and other Middle Eastern partners, as was reported, will amount to more than 9 billion rubles. AFG National will allocate these investments towards the increase of agricultural production, the expansion of its land bank and the construction of agricultural infrastructure, and also the expansion of the product line and the development of new brands.

The RDIF did not day exactly what stakes the investors would receive in EFKO and AFG National, saying only that they would be "significant" but not controlling.