Agrar: BayWa-Sanierung kurz vor Abschluss – Hybridanleihe fast wertlos

Munich – The Sanierung of BayWa's agrarian subsidiary is almost completed, and the holders of a 100 million Euro Hybrid Bond are set to face losses. According to a new restructuring agreement, they will only receive two percent of their capital and forgo interest payments, as BayWa announced in Munich on Wednesday. The bond, issued three years ago, was supposed to yield 7.75 percent; however, the revised plan offers no such return.

267 out of 268 creditors have already agreed to the provision of around 1.5 billion Euros, and the final partner's agreement is considered a formality. The earlier Sanierung concept failed due to the poor performance of BayWa r.e.'s wind and solar park subsidiary, which was expected to raise 1.7 billion Euros for the company's debt relief.

Now, significantly less is expected, and the package needs to be reworked with banks and major shareholders. Banks are making concessions on loans, extending their term to 2030, and the agrarian dealer, which was close to bankruptcy two years ago, will now have two more years to regain financial stability. The two major shareholders, Bayerische Raiffeisen-Beteiligungs-AG and Raiffeisen Agrar Invest, will cede their 67.1 percent stake to a trustee, but only if they increase their equity by at least 220 million Euros by 2029.

Banks will provide 700 million Euros in subordinate financing, and the remaining 900 million will only be returned if the BayWa r.e. sale generates that amount. With this move, the subsidiary will be eliminated from the BayWa AG and Energy Infrastructure Partner (EIP) balance sheets. The subsidiary contributed 1.3 billion Euros to the AG's balance and to EIP's, but they will no longer be entitled to the proceeds from a future sale.

The Sanierung expert has approved the new concept, and the restructuring agreement is expected to be finalized by the end of the year. The management, supervisory board, banks, and major shareholders must give final approval.