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Ukraine’s Obolon brewery borrows $10 million
Obolon, the largest independent brewery in Ukraine, has received a $10 million
revolving loan from the EBRD for working capital and, in particular, the
purchase of barley.
The Bank and Obolon have worked closely together since 1997, when the EBRD
lent $40 million to expand the brewer’s beer-production capacity. The latest
project will help Obolon procure and store locally produced barley to be
processed locally into malt, which will then be used to brew top local beer
brands.
Another important element of the transaction is that Obolon’s receipts for
grain stored in warehouses will serve as a key element of the security of the
EBRD loan – the second transaction in Ukraine in a month to employ the
innovative technique. Hans Christian Jacobsen, EBRD Director of Agribusiness,
said Obolon’s high profile will help develop and implement the warehouse
receipts system in Ukraine as well as provide a significant demonstration
effect of the system’s effectiveness. The system is expected to increase the
availability of post-harvest financing to farmers and food processors.
The Bank’s cumulative investments in Ukraine stand at €1.5 billion through 63
projects, while in the agribusiness sector alone, across all 27 countries of
operations, the Bank has invested more than €3.2 billion through 221 projects.
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