· Up to $42 million equivalent as a debt financing package to Agricover Credit to support agricultural MSMEs.
· At least 50 percent of proceeds directed to women-owned MSMEs.
· Project will help build resilience amid global challenges.
Bucharest, Romania, April 3, 2024—IFC is supporting a $42 million equivalent debt financing package to Agricover Credit IFN, Romania’s largest non-banking financial institution specializing in agriculture. The investment will expand access to financing for micro, small and medium enterprises (MSMEs) in Romania's agricultural sector, with at least 50 percent of the funds allocated to women-owned MSMEs, addressing a critical financing gap for women farmers and agri-businesses.
As part of this financing package IFC mobilized an aggregate amount of EUR20 million under its B Loan Program, from the Amsterdam-based ILX Fund, an SDG-focused global development finance asset manager, and from German impact investor Invest in Visions.
Agriculture accounts for 5 percent of Romania's GDP and employs 30 percent of the workforce compared to just 5 percent in the European Union (EU). Romania has the sixth-largest arable land area in the EU and ranks among the top global producers of wheat and corn. Despite its potential, the sector faces significant challenges, including structural weaknesses, low productivity, and limited access to financing—particularly for rural communities and women farmers.
“We are pleased to have the opportunity to extend our decade-long collaboration with IFC. This occasion marks the introduction of an innovative syndicated product that not only provides essential funding but also aids in diversifying our lender base,” said Serhan Hacisuleyman, CEO of Agricover Credit. “The shared commitment of IFC and Agricover to promote sustainability through inclusion programs will advance gender equality and support ongoing generational renewal efforts.”
Global geopolitical tensions have further disrupted regional agricultural markets, causing price volatility for inputs and products, and increasing lenders' risk aversion. The project will enable Agricover Credit, a longstanding IFC partner, to provide much-needed financing to farmers, including long-term loans essential for sustaining operations during economic uncertainty.
“IFC’s investment will address one of Romania’s largest funding gaps, improving access to finance for farmers and especially women, who face greater challenges in securing resources,” said Etleva Koka, IFC`s Manager for Financial Institutions in Europe. “This partnership will empower farmers to invest in essential equipment and working capital, helping them remain resilient in the face of global challenges.”
The project is supported by the Women Entrepreneurs Opportunity Facility (WEOF) through a performance-based incentive that will promote lending to women-owned SMEs. The WEOF, launched by IFC through its Banking on Women Program, and Goldman Sachs’ 10,000 Women initiative, is a first-of-its-kind facility dedicated to expanding access to capital for women entrepreneurs globally.
"Goldman Sachs 10,000 Women is proud to partner with IFC to provide a performance-based incentive as part of this significant investment in Agricover Credit. With its focus on women-owned agri-businesses, this project exemplifies WEOF's mission to address the financing gap faced by women entrepreneurs," said Charlotte Keenan, Global Head of Goldman Sachs 10,000 Women. "By providing access to capital, this partnership will enable these businesses to thrive, contributing to Romania’s economic growth. We are excited to continue our collaboration with IFC to empower women entrepreneurs worldwide and look forward to the positive impact this investment will have."
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
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About Agricover
Agricover is a leading group of companies in the Romanian agriculture, serving over 10,000 farmers. With 25 years of experience and an entrepreneurial approach to business development, Agricover is a generator of innovative solutions that transform farmers' businesses and lives on the long term. Agricover Holding includes Agricover Credit IFN, one of the largest non-banking financial institutions in Romania that specializes in financing farmers operations and investments, as well as Agricover Distribution and Agricover Commodities specialized in the distribution of agricultural inputs (seeds, crop protection products respectively crop nutrition products, and fuel).
About Goldman Sachs 10,000 Women
Goldman Sachs 10,000 Women is an ongoing initiative to foster economic growth by providing women entrepreneurs around the world with a business and management education and access to capital. The initiative has reached over 200,000 women from over 150 countries. In partnership with the International Finance Corporation (IFC), Goldman Sachs 10,000 Women launched the first-of-its-kind global finance facility in 2014 to enable access to capital to more women entrepreneurs. The 10,000 Women in-person business education program was launched in 2008, reaching over 10,000 women across 15 countries around the world, and in 2018, the 10,000 Women curriculum was made available online through Coursera, further democratizing access to a business education in more corners of the world. For more information on Goldman Sachs' investment in female entrepreneurs, visit: https://www.goldmansachs.com/citizenship/10000women/.
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