German and Austrian banks and financial institutions have made the first commitments for a possible rescue plan for BayWa. The 400 million euros now pledged is barely enough to pay the interest on the losses that are currently being incurred this current financial year.
The two major shareholders, Bayerische Raiffeisen-Beteiligungs-AG (BRB, 34 percent) and Austrian Raiffeisen Agrar Invest (28 percent), are supposed to provide 200 million euros in liquidity. On this basis, other banks are also prepared to provide loans of another 200 million euros.
The core of the problem lies in the capital-intensive renewable energy subsidiary BayWa re, whose solar and wind sales have ground to a halt. There have been previous attempts to divest most of that business.
In addition to the financial injection from the banks, BayWa is also seeking state aid to ensure the continuity of the company. The group has held talks with the German government about possible state guarantees. This could provide an additional buffer and bring the necessary stability in a period of great uncertainty.
The company is undergoing a restructuring to improve operational efficiency and reduce costs. According to stock market analysts, the company will have to divest some business units or sell share packages.
BayWa’s financial problems have raised serious concerns among farmers and other stakeholders in the agricultural sector. BayWa plays a crucial role in the agricultural supply chain, from seed delivery and harvest processing to the global distribution of agricultural products. German grain farmers are concerned about whether they will be paid for the harvests they currently harvest and deliver to Baywa.