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Uzbekistan's Ifoda secures $10m convertible bond from Abu Dhabi fund
(MENAFN- UzSAMA) Ifoda Agro Kimyo Himoya LLC (Ifoda), Uzbekistan’s leading private agricultural chemicals producer, announced the placement of a five-year, 110bn Uzbek soum ($10.1m) convertible bond today. The bond was acquired in full by Abu Dhabi Uzbek Investment (ADUI), an investment company established by the Abu Dhabi Fund for Development and the Uzbekistan Fund for Reconstruction and Development. Bluestone Investment Bank acted as investment advisor to Ifoda on the transaction.
Proceeds from the bond will be used to expand Ifoda’s local sales and direct-to-farmer retail business, modernize corporate governance and implementation of management systems, as well as boosting exports to Asian, European, and African markets.
Ifoda is the largest private producer of complex fertilizers and crop protection products in Uzbekistan. The Company produces these agricultural chemicals at its state-of-the-art production complex in the Namangan region. It also owns and operates a nationwide chain of 40 retail stores. Ifoda’s revenue was approximately $20m in 2021 and the Company plans to boost revenue using the proceeds from the sale of bonds.
“We’re delighted to forge this new relationship with ADUI. The proceeds from this transaction will allow us to accelerate the growth of our retail business, expand export markets, and increase our raw materials stocks. Just as importantly, we expect the partnership with ADUI will strengthen our business strategy, corporate governance, and management systems as well as open up new relationships with international partners,” said Kodirbek Mirzamahmudov, Chief Executive Officer of Ifoda.
"ADUI is very pleased with Ifoda's bond issuance. Our investment in Ifoda is yet another milestone in the bilateral economic relationship between the UAE and Uzbekistan. UAE's investment portfolio is close to over $5bn in various sectors of the economy. Uzbekistan is a leading agricultural producer. We believe that IFODA is critical in agriculture, encouraging domestic food production, ensuring food security, and facilitating export expansion," said Timur Rakhmanov, Chief Executive Officer of ADUI.
This bond was Ifoda’s second major transaction in the last three years. In December 2020, Ifoda sold a minority stake in its business for $10m to Balcom Co. Ltd., a privately held diversified Japanese group.
Proceeds from the bond will be used to expand Ifoda’s local sales and direct-to-farmer retail business, modernize corporate governance and implementation of management systems, as well as boosting exports to Asian, European, and African markets.
Ifoda is the largest private producer of complex fertilizers and crop protection products in Uzbekistan. The Company produces these agricultural chemicals at its state-of-the-art production complex in the Namangan region. It also owns and operates a nationwide chain of 40 retail stores. Ifoda’s revenue was approximately $20m in 2021 and the Company plans to boost revenue using the proceeds from the sale of bonds.
“We’re delighted to forge this new relationship with ADUI. The proceeds from this transaction will allow us to accelerate the growth of our retail business, expand export markets, and increase our raw materials stocks. Just as importantly, we expect the partnership with ADUI will strengthen our business strategy, corporate governance, and management systems as well as open up new relationships with international partners,” said Kodirbek Mirzamahmudov, Chief Executive Officer of Ifoda.
"ADUI is very pleased with Ifoda's bond issuance. Our investment in Ifoda is yet another milestone in the bilateral economic relationship between the UAE and Uzbekistan. UAE's investment portfolio is close to over $5bn in various sectors of the economy. Uzbekistan is a leading agricultural producer. We believe that IFODA is critical in agriculture, encouraging domestic food production, ensuring food security, and facilitating export expansion," said Timur Rakhmanov, Chief Executive Officer of ADUI.
This bond was Ifoda’s second major transaction in the last three years. In December 2020, Ifoda sold a minority stake in its business for $10m to Balcom Co. Ltd., a privately held diversified Japanese group.
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