Project 40: Kernal Group loan

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 46620

Status Complete

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Project timeline

Exploratory
Passed Concept Review
Passed Structure Review
Passed Final Review
Board Approved
Signed
Implementing
Completed

Project ID 46620

Status Complete

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Approval Date

23 Jul 2014

Disclosure date

03 Dec 2024

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project description

Project Description

This PSD relates to a historical Bank project approved some years ago, and does not represent a new approval, or allocation of new funds. Disclosure of this PSD was deferred in accordance with the transparency framework in place at the time, but due to an administrative oversight, was not subsequently disclosed

In July 2014, the Board of Directors approved an unfunded risk participation in a revolving credit facility provided by a syndicate of banks to Inerco Trade S.A. (the Company), part of Kernel Group (“Kernel”), a leading vertically-integrated agribusiness group engaged in oilseed crushing, grain trading, crop farming, transhipment and silo services operations in Ukraine. The Bank’s participation comprised of USD 50 million.

Project Objectives

The EBRD’s participation in the transaction will allow the Company’s corporate group to secure sufficient working capital financing for its trading activity at the time of a difficult economic and political environment in Ukraine.

Transition Impact

The transition impact of the project is expected to derive from the client’s support of the Bank’s policy dialogue initiative to promote policies aiming at increasing efficiency in commodity markets in Ukraine as well as from setting standards of corporate governance. The transaction will permit creation of frameworks for markets, and setting standards of corporate governance and business conduct.

Additionality

The Bank’s participation was highly additional and allow the client to complete the syndicate in the required amount and offer a diversification of its funding sources at a time when access to commercial funding on the terms offered was limited. Further, the Project supported the principles of sound banking, and contributed to ongoing policy dialogue in the country.

Environmental and Social Summary

The project was assessed as Category B, and the Bank was focused on ensuring compliance with any and all national requirements for environment, health and safety, and labour management throughout the Company’s corporate group. An Environmental and Social Action Plan was agreed, and the Company was required to report to the EBRD regularly on progress toward its implementation.

Technical Cooperation

None

Implementation Summary

The project was successfully implemented, allowing the Company to complete successful procurement of agricultural crops, and their subsequent storage, transportation, transhipment, and sale.

Transition impact

ETI Score:null

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PSD last updated

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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