EBRD joins US$ 150 million financing package for Moldova’s Trans-Oil

By Olga Rosca
@olgarosca


  • US$ 150 million package from nine financiers, including three development banks
  • Loan to finance expansion of high value-added produce and expansion into new markets
  • EBRD and Trans-Oil are long-standing partners

Moldova’s leading agricultural firm Trans-Oil will be able to grow its sunflower oil production and explore new markets thanks to a comprehensive US$ 150 million financing package from three development banks and six commercial lenders.

The EBRD is providing US$ 30 million. The facility, arranged and managed by ING Bank, also involves UniCredit Bank Austria, the Black Sea Trade and Development Bank, the Dutch Development Bank FMO and Mobiasbanca – OTP Group, OTP Bank, FIMBank and Banque Cantonale Vaudoise.

Trans-Oil covers the full agricultural value chain from farming, grain handling, storage and trading to wheat flour production, oilseed crushing and oil bottling.

The loan will be used to ensure the company’s trading of crops in 2019. This includes the purchase of grain and sunflower oilseeds from Moldovan farmers and other suppliers, storage, crushing of oilseeds, transportation and export.

This year, Trans-Oil is planning to increase its production of organic sunflower oil as well as high oleic sunflower oil, with the latter containing more “good” fat and considered to be a healthier, high value-added option.

Trans-Oil is also working to strengthen its current position in the European Union, the Middle East and northern Africa as well as to expand to new markets.

The EBRD and Trans-Oil Group are longstanding partners. The Bank has previously provided loans to the company to finance the purchase of agricultural commodities, the construction of a sunflower seed crushing plant in Ceadir Lunga, the expansion of a grain terminal in the Moldovan port of Giurgiulești on the river Danube and the acquisition and modernisation of a grain storage facility in the neighbouring port of Reni, in Ukraine.

The EBRD is the largest institutional investor in Moldova and to date has invested over €1.2 billion in the country. The Bank also provides business advice to local small and medium-sized enterprises and has helped about 1,000 Moldovan firms improve their performance and grow.