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.
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