KTG Agrar : SE statement on interest payment on its 2011/2017 bond

• The interest due is to be paid within the next 14 days
• Refinancing process to be completed in 2016
• Current year shows clearly improved operating performance compared to 2015

Hamburg, 6 June 2016. KTG Agrar SE (ISIN: DE000A0DN1J4) has announced that the interest due today, 6 June, on its 2011/2017 bond (ISIN DE000A1H3VN9) will not be made on time. To make this payment, KTG Agrar started realising hidden reserves some time ago. The sale of these non-essential assets - the capital gains are to be used to pay the a.m. interest and the book value is to be used to refinance the bond - has already been finalised and notarised. However, there has been an unforeseeable delay in the completion. This is why the interest payment is now expected to be made within the coming two weeks.

'We apologise for the delay and will endeavour to make the payment as soon as possible', said Siegfried Hofreiter, CEO of KTG Agrar SE. He added: 'KTG Agrar has been a reliable bond issuer since 2010 and has complied with all payment obligations on time. We continue to operate a profitable core business and will work hard to restore investors' confidence. Our policy now is to either consolidate or sell activities which we have built up during our expansion phase and which have failed to develop as expected. This delayed payment will not influence the current talks on refinancing the bond.' KTG Agrar continues to work towards a successful 2016 completion of the refinancing process for the bond due in June 2017; the company is in advanced talks on this matter with institutional investors.

Following on from what was a challenging year for the agricultural sector in 2015, the business is currently performing satisfactorily. As the harvest is about to start, the situation in the fields is clearly better than in the previous year. Says Siegfried Hofreiter: 'A harvest worth a good EUR 60 million is currently growing on our approximately 46,000 hectares of farmland.' In addition, the current year has seen continued dynamic growth in revenues and profits in the company's energy and food segments.

As soon as the interest has been paid to the paying agent, KTG Agrar will publish a statement to this effect.