Amatheon Agri Uganda Ltd. (AAU), a subsidiary of the Euronext-listed Amatheon Agri Holding N.V., has successfully restructured its EUR 20,000,000 convertible bonds and converted EUR 18.66 million in shareholder loans into equity, signaling a robust move to enhance its financial strength and support its long-term agricultural vision in Uganda and beyond.
A Vision for Sustainable Growth in Uganda
Established in 2013 in northern Uganda’s Nwoya District, Amatheon Agri Uganda has grown into a key player in the country’s agricultural sector. With a strategic focus on sustainable farming and leveraging Uganda’s favorable agro-climatic conditions, AAU operates over 3,000 hectares of land dedicated to crops such as maize, rice, soya, and chillies. The company is expanding its operations further, with plans to plant onions in 2025, which will add to its growing portfolio.
The restructuring announcement comes at a critical juncture, as AAU aims to reinforce its financial capacity to meet the evolving needs of the agricultural market in Uganda and the wider East African region. This includes strengthening its position to cater to underserved local markets, with strong road links to both domestic and regional markets, particularly in the areas bordering South Sudan and Kenya.
Financial Restructuring: Strengthening the Backbone for Future Expansion
Amatheon Agri Holding N.V. has extended the maturity date of the EUR 20,000,000 bonds from January 22, 2025 to January 22, 2028, providing a more stable financial structure for the company. Along with the extension, key amendments were made, including adjustments to interest rates, suspension of bondholder conversion rights until 2027, and early redemption rights from 2026. These strategic financial decisions will allow AAU to allocate more resources to growth projects, while maintaining its commitment to the sustainable agricultural model.
The conversion of EUR 18.66 million of shareholder loans into equity is a powerful move that will reduce the company’s debt obligations, enhancing its balance sheet and better positioning it for future opportunities in Uganda’s growing agribusiness sector. This step also aligns with the vision of Amatheon Agri Holding N.V. to establish a solid foundation for both local agricultural growth and regional expansion.
Creating Opportunities for Uganda’s Agribusiness Sector
The restructuring and financial positioning of AAU offer significant advantages for Uganda’s farmers, the Ministry of Agriculture, and Uganda Revenue Authority (URA). By reducing its debt and focusing on equity growth, AAU is better positioned to invest in new technologies, expand crop production, and contribute to the development of sustainable agricultural practices.
With AAU’s strategic agricultural hubs in Nwoya, Kiryandongo, and other regions, the company is poised to support local farmers through increased access to markets and innovative farming solutions. Furthermore, the company’s growing portfolio of crops, including chillies and the soon-to-be-planted onions, will foster increased food security and job creation in the local community.
Max Sturm, CEO of Amatheon Agri Holding N.V., commented: “The successful bond restructuring and conversion of shareholder loans into equity provide us with a stable financial foundation for continued growth. These measures not only ensure our long-term sustainability but also position us to make significant strides in Uganda’s agricultural development, benefiting farmers, local communities, and the broader East African region.”
Looking Ahead: A Vision of Continued Impact
Amatheon Agri Uganda Ltd. continues to make strides toward positioning Uganda as a regional leader in agriculture. The company’s commitment to innovative farming practices, sustainable growth, and community empowerment is aligned with the Ugandan government’s objectives to drive food security, economic empowerment, and agricultural transformation.
As Amatheon’s operations expand, so too will its ability to positively impact Uganda’s agribusiness landscape. The company’s strategic restructuring ensures that it is well-positioned to unlock new opportunities for local farmers, increase crop diversity, and contribute to the government’s agricultural goals while achieving economic prosperity for rural communities.