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- EBRD partners with Credit Agricole Ukraine to support new finance for agri producer Dniprovska Group
- EBRD’s US$ 5 million guarantee enables US$12.256 million loan from CAU
- Package marks Ukrainian company’s stabilisation and turnaround despite war
The European Bank for Reconstruction and Development (EBRD) is guaranteeing US$5 million of risk for a new US$12.256 million loan by its partner bank, Credit Agricole Ukraine (CAU) to Dniprovska Group, a leading Ukrainian agri producer with which the EBRD has an eight-year relationship. This marks the group’s stabilisation and turnaround after the war on Ukraine damaged its business in 2022.
Dniprovska Group is a leading agricultural group based in Dnipro and Zaporizhzhia regions, which produces poultry and sunflower oil and grows grain. When the full-scale war began, putting parts of Ukraine under Russian occupation, the group lost its Zaporizhzhia poultry complex and more than 40 per cent of its land bank. This caused interruptions in its production cycle and logistics, while war-related population movements cut its revenue.
However, Dniprovska has since become the second largest poultry meat producer in Ukraine with a current market share of 7 per cent. It has rearranged its logistics around its Dnipro regional base and succeeded in expanding export markets, which now generate more than half of its revenue, as well as sustaining domestic markets for its products.
The EBRD’s long relationship with Dniprovska, including a €20 million loan which the EBRD provided in 2019) has put the Bank in a good position to help the group overcome its difficulties. The EBRD accommodated Dniprovska in the early months of the war and is now working with CAU to meet the group’s increased working capital needs, as its business recovers, by guaranteeing a new loan with Credit Agricole.
The EBRD’s participation in the new loan by Credit Agricole Ukraine under the Risk Sharing Facility (RSF) will allow Dniprovska to extend the maturities of its existing working capital limits with CAU and to cover increased working capital needs for poultry meat production. In particular, the new working capital facility will support the company to cover rising prices for fodder in 2025 and to continue developing its poultry segment.
“This is a strong company that was damaged by the onset of war. Now, together with our partners, we are delighted to step up further with a guarantee for a new loan which will help Dniprovska Group enhance its cash generation and become stronger and more resilient going forward,” said Arvid Tuerkner, EBRD Managing Director for Ukraine and Moldova.
“Credit Agricole Ukraine is a key partner to Ukrainian Agriculture at large, we are also committed to supporting the territories we operate on by all means. We are therefore proud, together with the EBRD, to support Dniprovska Group, our long-standing client, in its investments in a key region and industry to us,” said Alexandre Tchesnakoff, Management Board Member, Credit Agricole Ukraine.
The EBRD is Ukraine’s largest institutional investor. It has stepped up its involvement in the country further since Russia began its full-scale war there. The Bank has made more than €8 billion available to Ukraine’s real economy since 2022 to support energy security, vital infrastructure, food security, trade and the private sector.