NIDERA (RUSSIA)

Location:

Russia

Project number:

29471

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

C

Target board date:

10 Dec 2002

Status:

Completed

PSD disclosed:

09 Oct 2002

Project Description

Proposed revolving facility to finance Nidera’s agri-commodity stocks in Russia and Ukraine.
The project would allow the company to expand its operations of seasonal cereals trading from post-harvest origination, storage and transport to local ports or domestic customers.
 

Transition Impact

The transition impact is likely to include:
  • Injection of working capital into Russian and Ukrainian agribusiness systems, which remain chronically illiquid. The Project represents a good opportunity to leverage the activities of a key sponsor and thereby increase funding to this sector without taking undue commercial risks.
  • Upstream linkages, promotion of competition and international integration of CIS agribusiness: Nidera provides limited pre-financing to farmers and other local market participants. Traders like Nidera regulate global supply and demand and provide a link between Russian agribusiness and international markets. This further encourages trading infrastructure.
  • Finally the Project further supports the Bank’s increasingly active institutional role in agribusiness financing in Russia and Ukraine and underlines the Bank’s credibility in pressing through warehouse receipt and other reforms.

The Client

Nidera Handelscompagnie B.V. is a leading trader of grains, rice and other agricultural products. The company has a presence in more than 30 countries and sells commodities, oil and oilseeds on average exceeding 17 million metric tonnes annually representing US$ 3.2 billion in current values.

EBRD Finance

Revolver loan of US$ 15 million.

Project Cost

US$ 15 million.

Environmental Impact

The project was screened C/1. This operation is not associated with significant environmental impacts. Although it involves existing business operations, the subsidiaries do not own or operate any processing facilities or any silos/warehouses in which produce is stored. The Company has been asked to complete a simple questionnaire on environmental policies or procedures utilised by the company and its subsidiaries. The Company will be required to comply with relevant national and EU requirements for environment, health and safety.

Technical Cooperation

None.

Company Contact

 

Business opportunities

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