About EBRD and agribusiness [EBRD

The sector

The EBRD is the single biggest investor in the agribusiness sector in the EBRD region. The EBRD’s involvement in the agribusiness sector spans all activities throughout the production chain, from farming, processing and trading to food distribution, packaging and retail. Moreover, the Bank has played a major role in developing the sector by supporting local- and foreign corporate clients as well as micro, small and medium sized enterprises.

The EBRD countries of operations have many competitive advantages in the agribusiness sector.

They account for more than 20% of the world’s potentially arable land, with top-quality soils and an abundance of skilled labour.
Their productivity could be increased vis-à-vis more developed economies.
They are home to 400 million consumers with increasing average incomes, driving an ever-growing demand for high quality products and improvements in distribution and retail.

The team

The EBRD’s agribusiness team has a unique mix of expertise and experience:

Experience of over 300 projects worth around €4.5 billion spanning the whole of the agribusiness production chain.
Market knowledge and appetite for projects across the region with the ability to support projects in challenging environments.
Flexible and innovative products and solutions, both debt- and equity based.
Track record with satisfied major multinationals - in many cases with multiple transactions - and a strong track record with local companies.
27 agribusiness banking specialists of 18 nationalities who are able to draw on the local expertise of other staff in the Bank’s dozens of offices across the region.

The team has a wide variety of clients, from multinationals wanting to expand their retail business in the region, to local entrepreneurs requiring working capital or finance for modernising a production line. If projects are commercially viable and complement- rather than compete with - private sources, the EBRD can be a valuable partner bringing with it a wealth of country and sector know-how.

Products

The EBRD is continuously developing new forms of financing to meet the changing needs of agribusiness clients across a wide geographical spread. Financing ranges from long-term loans and equity investments in the retail sector to asset-backed, short-term facilities to support the seasonal activities of food producers, processors and traders:

Long-term loans: Tailored to meet the individual needs in terms of maturity, currency (including local), security and repayment schedule.
Working capital loans: A particularly successful instrument to provide liquidity to the seasonal farming business. These loans are often secured by grain deposits or other produce.
Commodity finance: This financing against commodities has expanded rapidly and is offered directly to food processors and traders or channelled through local banks.
Equity: Up to 35% of the total equity in a project company can be taken in many forms, such as straight equity, preferred shares and convertible debt.
Guarantees: EBRD’s preferred creditor status, via guarantees, is a considerable benefit both for commercial banks and strategic investors in mobilising private sector financing for agribusiness projects.
Multi-project facilities: These allow financing to be provided to international food companies for several projects under a single agreement.

International cooperation

The EBRD Technical Cooperation Funds Programme provides funding to improve the preparation and implementation of the EBRD’s investment projects and to provide advisory services to clients. It is funded by governments and international institutions and managed by the EBRD. Each year the programme provides about €80 million to finance a wide range of activities of consultants and other experts.

The agribusiness team works in close co-operation with the United Nations’ Food and Agriculture Organisation (FAO) to support our clients and sector via a joint Fund for Special Assistance. The fund can finance consultants for anything from a sub-sector study to hands-on consultancy for a specific project.

EBRD’s close cooperation with FAO and the World Bank helped found East Agri, a network of public and private agriculture/agribusiness institutions working in Central and Eastern Europe. East Agri members strive to build relationships, share experiences and strengthen communication in the sector and region. Outcomes are more innovative approaches towards agricultural/agribusiness investments among international financial institutions and private banks operating in the region.