Project Description
The EBRD is considering a USD 20 million loan to Ukrainian Agrarian Farms Limited to service the seasonal working capital requirements of the approximately 70 Ukrainian farms that this company owns and operates.
The loan proceeds will go towards buying agricultural inputs and services before harvest and crop storage after harvest. Agricultural inputs include the purchase of modern farming machinery.
Transition Impact
Funding is very challenging for Ukrainian agricultural companies at present. The Bank’s loan will enable land that would otherwise be left fallow to be planted and harvested. It will also enable the farms to implement an ambitious programme of restituting land that has fallen out of cultivation, implement mini-till (conservation) farming practices that reduce emissions whilst maximising production and acquire modern farming machinery to replace the obsolete machinery that is still prevalent in Ukraine.
The Client
Ukrainian Farm Funding Limited, a Cyprus registered limited liability company that is used as a financial holding company for the Ukrainian farming operations.
EBRD Finance
USD 20 million revolving debt facility.
Project Cost
USD 70 million in working capital needs.
Environmental Impact
Screened IESE in accordance with the EBRD's 2008 Environmental and Social Policy which means an Initial Environmental and Social Examination of the project is necessary to determine the environmental and social impacts and issues associated with the project. It is likely that the impacts can be easily identified and mitigated and it is anticipated the project will be categorised B. The environmental and social due diligence is currently on-going and will include a review of the Company’s capacity and systems to manage environment, health, safety and labour issues in compliance with Ukrainian regulations and the EBRD's Performance Requirements (PRs).
Based on the results of due diligence, if necessary, an Environmental and Social Action Plan (ESAP) may be prepared and agreed with the Company to address any environmental and social issues identified within a reasonable time-frame. This PSD will be updated when the results of due diligence are known.
Technical Cooperation
None.
Company Contact
Dmitry Dragun
Mobile: +380673246918
Work: +380445949440
E-mail: ddragun@ukragrinvest.com.ua
Business opportunities
For business opportunities or procurement, contact the client company.
For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com
General enquiries
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com
Public Information Policy (PIP)
The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP
