ANI takes investment from Japanese

Agri-conglomerate AgriNurture, Inc. (ANI) is planning to invest a total of R200 million in its subsidiaries while taking in R320 million in investment from a Japanese investor.

In a disclosure to the Philippine Stock Exchange, the firm said it will invest R100 million to increase the capital of affiliate Agricultural Bank of the Philippines (ABP) to R200 million.

This is still subject to final approval by the Securities and Exchange Commission (SEC) and the Bangko Sentral ng Pilipinas (BSP).

ANI said ABP's capital hike would fund the expansion of the bank's P2P platform and e-wallet business. Through the capital infusion, ANI aims to enhance supply chain microfinance access of Filipino farmers in remote areas using technology.

According to ANI president and CEO Antonio Tiu, ABP's P2P platform would allow farmers to borrow money directly using their mobile phones.

Proceeds of the loan can then be stored in the farmers' e-wallet which can be exclusively used for purchases in ANI's accredited merchants nationwide.

To complete the company's farmto-plate agri-eco system for immediate fintech integration, ANI also approved the incorporation of Agri Technology Holdings, Inc. (ATHI), a 100 percent owned subsidiary, with an initial capital of R100 million.

The new subsidiary will serve as ANI's post harvest and farm technology arm. It will also collaborate with hybrid seed producer BeiDaHuang and agri-biotech company Ocean Biotech, both ANI subsidiaries.

Finally, ANI disclosed that the company's board of directors has approved a R320 million subscription of Japanese investor Takuhiro Kusumi in the agri firm, subject to foreign equity limits set by law.

ANI's subscription to increase ABP's capital as well as the incorporation of ATHI are both awaiting SEC approval.