BayWa AG has reached an agreement with its most important creditor banks and its largest shareholders – Bayerische Raiffeisen Beteiligungs-AG (BRB AG) and Raiffeisen Agrar Invest (RAIG) – on the provision of fresh liquidity amounting to around €550 million. This required standstill agreements to be successfully concluded with the lending banks. Loan repayments due will also be suspended until the end of September 2024 so that the commissioned restructuring report can be finalised. The efficacy of the agreements is subject to various standard conditions, which the BayWa Board of Management expects to be met in the coming days.
Bridging loan agreement with a volume of EUR 272 million
Specifically, the financing package provides that the core banks will make bridging loans with a volume of €272 million available. In addition, BayWa AG’s two largest shareholders have provided subordinated shareholder loans totalling €125 million as a considerable part of the package to date, of which €75 million has already been disbursed.
On top of that, BRB AG, together with Frankfurt-based DZ Bank, acquired BayWa AG’s stake in BRB Holding GmbH for a total purchase price of €120 million and RWA AG acquired BayWa AG’s stake in BSV Saaten GmbH for a purchase price of approximately €10 million. RAIG and its affiliated companies also acquired grain from BayWa AG at market prices for a total purchase price of €20 million to provide liquidity in the short term.
Restructuring report end of September
Based on the discussions with the banks, other financing partners and major stakeholders, the Board of Management assumes that a concept for a sustainable reorganisation and a new financing arrangement can be reached by the end of September on the basis of the restructuring report, which will then be available in draft form.
“We want to go on supporting our customers, suppliers and financing partners as the reliable partner they are used to,” says BayWa CEO Marcus Pöllinger. “For that reason, we will now look at the current situation and determine the organisational and procedural measures that need to be taken in order to restore lost trust. The financing package marks an important step towards securing BayWa’s long-term future. As such, we have taken a further step towards making the company more robust in a difficult market environment, with less debt in future and a clear strategic focus on the profitability of the business units.”
Planned reorganisation of BayWa r.e.
In a time of rising interest rates, the Board of Management has reviewed the expansionary and mainly credit-financed worldwide business market over recent years as part of Strategy 2030 and has been steering a course towards consolidation since the beginning of the year as part of the implementation of the strategy. The measures from the restructuring report will accelerate this process.
See also: BayWa r.e. – Spain: 95 MW solar park sold
In addition, the capital-intensive project business involving wind farms and solar parks will be reorganised, along with other areas of the Renewable Energies Segment, which BayWa operates via its fully consolidated subsidiary BayWa r.e. AG. Irrespective of this, BayWa continues to see growth opportunities in the markets for renewable energies. (hcn)
