The European Bank for Reconstruction and Development (EBRD) is providing a US$ 13 million working capital facility to Ukrainian Agrarian Investments (UAI), which operates over 70 farms located across northern and western Ukraine. The loan is the first project under the Bank’s new €150 million Ukrainian Corporate Support Facility designed to support existing EBRD clients in the country.
By assisting this project, the EBRD commits more funds to one of the most important and promising sectors of the Ukrainian economy in order to help agribusiness companies address their liquidity and working capital needs. The loan will also help restore the market’s confidence and appetite for future projects in the country.
UAI has been working successfully with the EBRD since 2010. The loan proceeds will enable the company to fully secure its seasonal working capital needs to harvest 175,000 hectares at a time when the availability of funding in Ukraine is significantly reduced.
The project is part of the EBRD’s operational response in Ukraine aimed at support for the real sector of the domestic economy. The Bank expects to be able to invest around €1 billion a year, with the level of investment since February 2014 having reached over €400 million.
The EBRD is the largest financial investor in Ukraine. As of 1 May 2014 the Bank had committed €8.4 billion (US$ 11.5 billion) through 327 projects in the country.
