DGAP-News: KTG Agrar AG

DGAP-News: KTG Agrar: Successful corporate bond placement

DGAP-News: KTG Agrar AG / Key word(s): Bond/Issue of Debt KTG Agrar: Successful corporate bond placement

07.06.2011 / 12:37

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KTG Agrar: Successful corporate bond placement

Hamburg, 7 June 2011 - KTG Agrar AG has successfully placed its second corporate bond (ISIN: DE000A1H3VN9). Due to strong demand from institutional and private investors, the subscription period for the EUR 50 million issue ended prematurely. The 'KTG Biowertpapier II' has a term of six years and a fixed interest rate of 7.125% p.a. 'We are very pleased with the great interest and the confidence placed in us, 'said Siegfried Hofreiter, CEO of KTG Agrar. 'Our bond and our shares allow investors to invest in agriculture, a sector with a promising future, as demand for farmland, healthy food and clean energy is growing constantly. We will aggressively exploit this potential going forward and continue our successful growth strategy.' youmex invest AG held the mandate for institutional sales, while equinet Bank AG and montega AG acted as selling agents. It is planned to list the bond in the Entry Standard for corporate bonds at the Frankfurt Stock Exchange.

KTG Agrar will continue its profitable growth in the coming years. The company has some 33,500 hectares of farmland in east Germany and Lithuania and primarily grows organic and conventional food crops such as grain, maize and rapeseed. In the coming years, the company plans to expand its farmland by approx. 10% per year and to further increase the percentage of own farmland from the current 20%.

KTG Agrar also intends to expand its biogas activities significantly. In 2011 alone, the production capacity is to be increased from16 megawatts to 25 - 30 megawatts (MW), with a further increase to 35 - 40 MW planned for next year.

The legally relevant prospectus is available for downloading at www.ktg.ag.

About KTG Agrar: With cultivable land of more than 33,000 hectares, KTG Agrar AG is one of the leading producers of agricultural commodities in Europe. The Hamburg-based company's core area of expertise is the organic and traditional cultivation of market products such as cereals, maize and rapeseed. For organic market products KTG Agrar is the European market leader. The company mainly produces in Germany but has also operated production in the EU full member state of Lithuania since 2005. The third mainstay is the production of bio-energy. At present, KTG Agrar operates biogas plants with a total capacity of around 16 megawatts. In the year 2010, KTG achieved a total output of EUR 70.8 million and EBIT of EUR 13.4 million. Since November 2007 the company is listed on the Frankfurt Stock Exchange and has currently about 250 employees. Further information can be found at www.ktg.ag.

Contact: Investor Relations / Press Fabian Lorenz IR.on AG Phone: +49 221 914097 - 6 E-mail: fabian.lorenz@ir-on.com

End of Corporate News

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07.06.2011 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement.

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Language: English Company: KTG Agrar AG Ferdinandstr. 12 20095 Hamburg Deutschland Phone: +49 (0)40-303 76-47 Fax: +49 (0)40-303 76-799 E-mail: info@ktg-agrar.de Internet: www.ktg-agrar.de ISIN: DE000A0DN1J4 WKN: A0DN1J Listed: Freiverkehr in Berlin, Düsseldorf, München, Stuttgart; Open Market (Entry Standard) in Frankfurt End of News DGAP News-Service --------------------------------------------------------------------- 127749 07.06.2011