Louis Dreyfus Grain Trade Finance

Location:

Ukraine

Project number:

40493

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Approval date:

30 Jun 2009

Status:

Complete

PSD disclosed:

14 May 2009

Project Description

The EBRD is considering extending to Louis Dreyfus Commodities Kazakhstan an existing working capital facility of USD 75 million, currently available to Louis Dreyfus Commodities in Ukraine and Russia, in order to provide stable financing for the increasing working capital needs for its agricultural commodities merchandizing activities. Although the original commitment amount of USD 75 million will not be increased, the Kazakh subsidiary will be able to borrow up to USD 20 million from the existing regional facility to finance cotton merchandizing operations. Working capital needs are seasonal and cover the purchase of agricultural commodities at prices fluctuating throughout the year.

Transition Impact

The proposed project will enhance the role played by Louis Dreyfus Commodities in Ukraine, Russia and Kazakhstan, which contributes to creating a market-based system in the regional agricultural sector, and aims to set standards for business conduct in grain and cotton merchandizing activities. The project will also reinforce the existing agricultural infrastructure through the client’s significant grain and cotton purchases a key factor underpinning farming in the region.

The Client

Louis Dreyfus Commodities Ukraine Ltd, a company existing and incorporated under the laws of Ukraine, Louis Dreyfus Commodities Vostok Ltd, a company existing and incorporated under the laws of the Russian Federation, and now an additional borrower, Louis Dreyfus Commodities Kazakhstan Ltd, a company existing and incorporated under the laws of Kazakhstan.

All three companies operate as agricultural commodity merchandizers, primarily in the wheat, barley, corn, sunflower seeds and cotton markets.

EBRD Finance

Up to USD 75 million 3-year revolving loan to finance partially the working capital needs of Louis Dreyfus Commodities in Ukraine, Russia and Kazakhstan.

Project Cost

Up to USD 350 million.

Note: Actual financing needs will fluctuate based on current commodity prices.

Environmental Impact

Categorised B. Louis Dreyfus Commodities is well known to the Bank through previous transactions and the Company's management of environmental and social issues has always proved satisfactory to the Bank. In the context of this transaction the Company has been asked to provide some additional information on key labour and environmental issues, to ensure compliance with the Bank's revised Environmental and Social Policies. The Company will continue to provide the Bank with annual reporting on environmental and social issues associated with its operations.

Technical Cooperation

None.

Company Contact

Louis Dreyfus Commodities
Financing & Treasury Europe & Black Sea
Herve Sahores
29, route de l’Aeroport, PO Box 236
CH-1215 Geneva 15
Tel: +41-22 799 26 66
E-mail: herve.sahores@ldcom.com

 

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

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Text of the PIP

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