Investing in Noble Group

By EBRD  Press Office
@ebrd

$30 million syndicated loan to grain and oil seeds company Noble Group

The EBRD is providing a $30 million loan to Noble Hammadde Ticaret A.S., a grain and oilseeds supply chain company operating in Turkey, to support the company’s further development.

Noble Hammadde Ticaret A.S is a wholly-owned subsidiary of Noble Group Limited, a leading global supply chain manager operating in agricultural and other commodities, listed on the Singapore Stock Exchange.

It mainly imports soybean, soybean meal, soybean oil, sunflower oil, rice, corn and wheat from Noble Group companies and third parties and sells these commodities in the local market. Noble Hammadde Ticaret is outsourcing the processing of grain and oilseeds to local partner companies.

The EBRD financing, an annual loan that is renewable for three years, will be used to support Noble Hammadde Ticaret’s working capital needs. Under the EBRD’s A/B loan structure, the Bank is retaining $10 million on its own account with the remaining amount to be syndicated to a third party bank.
 Through this project, the EBRD is supporting the development of private entrepreneurship in the Turkish agribusiness sector and is helping to raise standards in the grain processing industry.

In addition, the Bank’s financing is supporting the Noble Group’s strategy to develop its operations in the Black Sea region. In October 2009 the EBRD provided a similar financing package with a maximum commitment of $50 million to Noble Group’s subsidiary in Ukraine.

“This is the EBRD’s first agribusiness investment in Turkey. In the current environment securing financing for trading activities remains a challenge, and the EBRD is pleased to support the further development of Noble Hammadde Ticaret with this project, which will have a wider positive impact overall on the Turkish agribusiness sector,” said Gilles Mettetal, EBRD Director for Agribusiness.

Noble Group’s CEO, Ricardo Leiman added: “We are pleased to further enhance our relationship with the EBRD and delighted to receive their support for our important domestic Turkish business. We consider this an endorsement of a successful business model.”
 To date the EBRD has directly committed over €5 billion in more than 340 agribusiness projects in central and eastern Europe and the CIS.