The European Bank for Reconstruction and Development (EBRD) has signed an agreement to acquire a 13% stake in Romanian agribusiness company Agricover Holding.

EBRD has invested RON32m (€7m) in the group, which is owned by Iranian investor Jabbar Kanani.

Agricover Holding president Jabbar Kanani said: “We are joining forces with the EBRD to accelerate our support for the development of modern agriculture in Romania.

“Together with the bank, we will continue to provide farmers with innovative solutions designed to enhance the performance of their farming activities.”

The investment by EBRD will be used for supporting the growth of the locally owned Romanian companies, which serve farmers in all agricultural sectors.

"The investment by EBRD will be used for supporting the growth of the locally owned Romanian companies."

EBRD’s funding will help Agricover to meet the growing financing needs of local farmers and will ensure that a larger number of small and medium-sized farms will gain access to modern technologies and markets.

Agricover is reported to have been associated with the Romanian agricultural sector for more than a decade, offering financial services to more than 4,500 farmers through its two subsidiaries Agricover SRL and Agricover Credit IFN.

The company noted that it will continue to support farmers in animal husbandry and will develop its recent investment in the pork processing business.

Completion of the transaction is subject to statutory approvals and is expected to be closed by the end of this year.