Syndicated loan of up to US$ 130 million to boost export operations, support activity of major grain trader
The European Bank for Reconstruction and Development (EBRD) is arranging a US$ 130 million syndicated loan facility in support of Ukraine’s leading grain and oilseeds trader and producer Nibulon.
The loan will provide Nibulon with necessary working capital and support its trading activity, including export sales. The company owns and operates one of the largest networks of grain handling and logistics infrastructure in the country.
The facility will consist of an A-loan of up to US$ 45 million for the EBRD’s own account and a B-loan of up to US$ 90 million, which will be syndicated to commercial banks.
By organising this loan the EBRD continues to support one of the key operators in agricultural commodities in Ukraine with a long-term strategy to invest in grain logistics and infrastructure. This is particularly important because of Ukraine’s aspirations to strengthen its position as a major global grain producer and trader with a potential to export around 50 million tonnes of grain annually.
The Bank has been successfully working with Nibulon since 2010 and, to date, has organised financing for the group worth almost US$ 200 million via a number of loan facilities. The two parties have also developed a strong policy dialogue about the development of the grain sector in Ukraine.
The EBRD is the largest international financial investor in Ukraine. As of 1 August 2015, the Bank had a total cumulative commitment of €11 billion in 345 projects throughout the country.