EBRD renews US$ 130 million syndicated facility for Nibulon

By Anton Usov

Nibulon facility

The European Bank for Reconstruction and Development (EBRD) has organised a new syndicated facility worth US$ 130 million for Nibulon, Ukraine’s leading grain trader for the ongoing crop harvesting and marketing season. The facility will replace the syndicated loan of US$ 125 million signed in 2012, which expired in June 2014.

The new 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$ 100 million, which will be syndicated to commercial banks. Several banks, including ING and ABN Amro, have already committed their participation, which demonstrates growing confidence of international financiers in Ukraine’s agribusiness.

The transaction will help the Bank’s long-standing client Nibulon address working capital needs associated with crop origination, primary processing, transport and storage in the current environment of reduced availability of external funding in Ukraine.

The EBRD is the largest financial investor in Ukraine. As of the end of July 2014, the Bank had committed €9.2 billion (US$ 12.3 billion) through 329 projects in the country.