EBRD arranges US$ 125 million financing to support Ukrainian grain sector

By Anton Usov

The EBRD is organising a syndicated facility of up to US$ 125 million for one of the largest Ukrainian agribusiness companies Nibulon, which operates 23 inland and river silos in 13 regions of Ukraine with total grain storage capacity of more than 1.5 million tonnes. It will help streamline Nibulon’s operations related to origination, primary processing, transportation and storage of agricultural commodities.

The facility will consist of an A-loan of up to US$ 30 million for the EBRD’s own account and a B-loan of up to US$ 95 million, which will be syndicated to commercial banks. It will allow Nibulon to consolidate its balance sheet and will provide necessary working capital for the next three seasons.

This transaction continues a very successful cooperation between Nibulon and the EBRD, which began in 2010 and which, among other objectives, is aimed at the development of better storage and shipment infrastructure along the Dnieper River. Another objective of this close cooperation is the development of an extensive network of grain storage and a transportation logistics infrastructure across Ukraine.

The EBRD Country Director for Ukraine André Küüsvek said: “This is one the largest syndicated transactions in the Ukrainian agribusiness over several years, which shows the confidence of international financiers both in the country and in the sector. We are pleased to deepen our cooperation with Nibulon, strategic initiatives of which are of systemic importance for Ukraine and the region”.

Nibulon is the only Ukrainian company participating in the United Nations food programmes, thus addressing global food security issues. Cooperation with the EBRD will boost Nibulon’s efficiency, competitiveness and will further enhance its business reputation to secure its status as a major international agribusiness player.

The EBRD is the largest financial investor in Ukraine. As of the end of October 2012, the Bank had committed over €8 billion (US$ 10 billion) through 327 projects.