The provision of up to USD 80 million in the form of a participation in syndicated senior secured revolving credit facility to finance working capital needs of Kernel Group. The EBRD financing will support the Group's operations in what remains to be challenging environment as the Covid-19 pandemic is ongoing. Working capital financing is associated with the procurement, storage, processing, transportation of agricultural commodities, and their export.
Provision of working capital financing for the Group's activities in Ukraine.
The Project is expected to have a significant transition impact under the Well-Governed and Competitive transition qualities. Under the Well-Governed quality, the project will support improvements in the Group's climate governance practices and alignment with recommendations from the Taskforce on Climate-related Financial Disclosure (TCFD). More specifically, this will include the development of a formal climate change strategy for the Group and a decarbonisation pathway based on science based targets as well as improvement in current climate-related disclosures practices and risk management processes.
Under the Competitive quality, the project will support an increase in pre-financing as well as expanded access to and usage of digital solutions by the Group's partner farmers.
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
Total Project Cost
EBRD offers a large volume instrument that fills a market funding gap and is required to structure the project and also due to adverse market conditions, e.g. the COVID-19 crisis. Client makes use of EBRD expertise on corporate governance improvements, including for climate risk management.
Environmental and Social Summary
Categorised B (ESP 2020). Kernel is an existing client of the Bank and has previously been the subject of extensive environmental and social (E&S) due diligence. The Company is currently implementing an environmental and social action plan (ESAP) covering both corporate and individual facility actions. E&S due diligence for this new facility comprised review of the existing ESAP and annual E&S reporting provided in the context of existing projects. Progress to date on implementing the ESAP is satisfactory. The Company has adequate capacity and systems to manage the E&S issues relevant to its activities and there were no significant E&S issues raised through annual reporting. The Company will be required to continue to implement the agreed ESAP and ensure that all facilities financed by the EBRD are structured to meet the Bank's Performance Requirements.
Technical Cooperation and Grant Financing
Company Contact Information
Michael Iavorskyi, IR Manager
+380 44 461-88-01 ext 72-75
+380 44 461-88-01
3, Tarasa Shevchenka Lane Kyiv, 01001, Ukraine
PSD last updated
22 Jan 2021
Further information regarding the EBRD’s approach to measuring transition impact is available here.
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Environmental and Social Policy (ESP)
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More information on the EBRD’s practices in this regard is set out in the ESP.
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The AIP 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 following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.
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Independent Project Accountability Mechanism (IPAM)
If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).
IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.
Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email firstname.lastname@example.org to get guidance and more information on IPAM and how to submit a request.