“N’TANIQ TVSH’’ OJSC offers to invest in agriculture in the Republic of Armenia.
It is planned that the ”N’TANIQ TVSH” OJSC will establish “AGRO HOLDING” CJSC in cooperation with “ARMENIAN NATIONAL INTERESTS FUND” CJSC, which is a private equity fund owned by the Government of Republic of Armenia. So this investment fund will share risk with investors. The fund will withdraw from the project within 5-8 years at the request of “N’TANIQ TVSH” OJSC for a pre-agreed fee.
*Total amount of shares is 100.000
“AGRO HOLDING”CJSC is a agricultural complex which consists 20 smart cattle barns (15 cows each), a cheese factory, a hydroponic system for green fodder production, a biogas production, 10 greenhouse farms (1200 msq each, growing tomatoes), 20 individual refrigeration units (150 msq each), 40 hectares of intensive gardens (growing apples and/or pears), 1 megawatt of solar panels.
GREENHOUSE FARMS
solar energy
Hydroponic Fodder system
cheese production
cows
Biogas production
intensive gardening
Refrigeration Units
Total
2.100.000€
47.6%
1.000.000€
52.4%
1.000.000€
ANIF Private equity fund owned by Government of Armenia
Investors
Total
6.619.000€
Total Investment of AGRO HOLDING’s Shareholders
2.100.000 €
Leasing from ACBA BANK (ready to lend)
703.000 €
Government grants (cashback from government)
1.280.000 €
Loan from ACBA BANK (ready to lend)
1.700.000 €
Interest free loan from ACBA BANK (ready to lend)
536.000 €
Investment from operational profit of AGRO HOLDING
300.000 €
Total 2.100.000 €
Investors
48%
Private equity fund owned by Government of Armenia
52%
Total
5.140.833€
36.2%
1.860.981€
39.8%
2.046.052€
24%
1.233.800€
Private equity fund owned by Government of Armenia
Investors
Farmers
Total
7.240.833€
36.2%
2.621.182 €
39.8%
2.881.851€
24%
1.233.800 €
Private equity fund owned by Government of Armenia
Investors
Farmers
(Sweat equity)
Total 2.085.766 €
Farmers
Private equity fund owned by Government of Armenia
Investors
24%
500.584 €
36%
755.047 €
40%
830.135 €
Payback period of the project is 53 month or less than 4.5 years
Yearly average Return on Investments is 22.6%
| Profit Margin (average for the first 5 year) | 16% |
| Year 3 | 26% |
| Year 4 | 33% |
| Year 5 | 40% |
| Free Cash Flow | |
| Year 1 | -4.700.000 € |
| Year 2 | -450.000 € |
| Year 3 | +1.300.000 € |
| Year 4 | +300.000 € |
| Year 5 | +2.000.000 € |
Net present value* (NPV) at a discount rate of 8.3% is 200.194 €
Internal rate of return (IRR) of the project is 10.1%. For comparison, note that profitability of governmnet bonds in AMD (for 5 year) is 6.92%, the deposit rate for USD is in average 4.22%.
*If the NPV is positive, then the project is profitable. The higher the NVP value, the more attractive the investment project.
17.86€
Provision of subsidies and favorable loan conditions. Development of programs aimed at improving the well-being of rural families in Armenia.
20.54€
Provision of subsidies and favorable loan conditions. Development of programs aimed at improving the well-being of rural families in Armenia.
*Total amount of shares is 100.000
