Kernel Oil Working Capital

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 51351

Status Cancelled

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Project ID 51351

Status Cancelled

Location

Ukraine

Business Sector

Food and Agribusiness

Notice Type

Private

Environmental Category

Approval Date

04 Sep 2019

Disclosure date

31 Jul 2019

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The provision of up to US$ 40 million in the form of a participation in a syndicated senior secured revolving credit facility to finance working capital needs of Kernel Group. Working capital financing is associated with the procurement, storage, processing, transportation of oilseeds and vegetable oil products, and export sale.

Project Objectives

Provision of stable working capital financing for the Group's activities in Ukraine.

Transition Impact

The Project is expected to have a significant transition impact under the "Competitive" and "Integrated" transition qualities through: (i) the expanded access to and usage of open digital solutions for precision agriculture which will benefit Kernel Group and partner farmers in their daily operations; (ii) the enhancement of the connectivity of silos by facilitating access to Kernel's logistics or other logistics solutions thanks to the "TransitHub". Through this online platform the Group will be able to service small and mid-size communities of farmers, including in remote areas.

Client Information

KERNEL HOLDING SA

Kernel Group is a leading Ukrainian vertically-integrated agribusiness, engaged in oilseed crushing, grain trading, crop farming, transshipment, and silo services.

EBRD Finance Summary

USD 80,000,000.00

Total Project Cost

USD 390,000,000, comprising of existing and increased working capital financing

Environmental and Social Summary

Categorised C (2014 ESP). Participation in a short-term syndicated facility for working capital purposes is not associated with significant environmental and social issues. Environmental and social due diligence on the Group was undertaken by ESD in the context of the first financing for the Kernel Group (Operation No. 40295), and by independent consultants in the context of the second project with the Group (Operation No. 50363). For this second project, an environmental and social action plans was developed and is still under implementation by Kernel. Reporting to date has been satisfactory and demonstrates Kernel's compliance with national EHS requirements and the Bank's PRs. The Bank will continue to monitor the implementation of the current ESAP to ensure on-going compliance. Given this, and given the limited issues directly associated with this project, no additional actions are required of the Group.

Technical Cooperation

None.

Company Contact Information

Michael Iavorskyi, IR Manager
ir@kernel.ua
+380 44 461-88-01 ext 72-75
https://www.kernel.ua/

Transition impact

ETI Score:66

PSD last updated

09 Sep 2019

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

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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

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

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