AppHarvest Signs Credit Facility Agreement With Rabobank

Agriculture technology company AppHarvest Inc APPH has signed a credit facility agreement with Rabo AgriFinance, a subsidiary of Rabobank, a Dutch financial services company.
Rabobank will provide $75 million to expand AppHarvest’s network of high-tech controlled environment agriculture (CEA) facilities in Central Appalachia.
AppHarvest has entered into a 60% loan-to-value mortgage under the credit facility at an anticipated fixed rate of between 4 to 5% for ten years.
The first farm is expected to be capable of producing more than 40 million pounds of tomatoes annually.
AppHarvest plans to develop a network of 12 high-tech farms by the end of 2025.
“The market is showing significant interest in the AppHarvest business model that’s driven by environment, governance, and sustainability (ESG) principles to build a climate-resilient food system with more predictable yield and quality,” said Jonathan Webb, Chief Executive Officer.
AppHarvest serves grocery store chains and foodservice outlets such as Kroger Co KR and Wendys Co WEN.
Barclays analyst Benjamin Theurer initiated coverage on AppHarvest with an Overweight rating and a price target of $25.
Price action: APPH shares are trading higher by 1.54% at $15.79 on the last check Wednesday.