ANI infuses P100 M to affiliate agri bank

AgriNurture Inc. (ANI) is expanding its micro-finance initiatives to enhance credit access to farmers by strengthening its affiliate Agricultural Bank of the Philippines (ABP).

Last week, the company’s board of directors agreed to infuse P100 million into ABP to boost the bank’s capital to P200 million, subject to final approval by the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas.

ABP’s capital hike would fund the expansion of the bank’s P2P platform and ewallet business, ANI said n a disclosure to the Philippine Stock Exchange (PSE).

The capital infusion would allow ANI to enhance supply chain micro-finance access of Filipino farmers in remote areas using technology, said ANI president and CEO Antonio Tiu.

ABP’s P2P platform will 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 “farm-to-plate agri-eco system for immediate fintech integration,” ANI also approved the incorporation of a technology subsidiary.

Agri Technology Holdings Inc. (ATHI), a 100 percent owned subsidiary, will have an initial capital of P100 million.

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

ANI’s board also approved a P320-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 the technology arm ATHI are both awaiting approval of the SEC.

ANI is a company engaged in various agro-commercial businesses, specifically focusing on the export of fresh produce as its main revenue stream.