UAFL - RenCap

Location:

Ukraine

Project number:

41181

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

21 Apr 2010

Status:

Completed

PSD disclosed:

18 Feb 2010

Project Description

The EBRD is considering a USD 20 million loan to Ukrainian Agrarian Farms Limited to service the seasonal working capital requirements of the approximately 70 Ukrainian farms that this company owns and operates.

The loan proceeds will go towards buying agricultural inputs and services before harvest and crop storage after harvest. Agricultural inputs include the purchase of modern farming machinery.

Transition Impact

Funding is very challenging for Ukrainian agricultural companies at present. The Bank’s loan will enable land that would otherwise be left fallow to be planted and harvested. It will also enable the farms to implement an ambitious programme of restituting land that has fallen out of cultivation, implement mini-till (conservation) farming practices that reduce emissions whilst maximising production and acquire modern farming machinery to replace the obsolete machinery that is still prevalent in Ukraine.

The Client

Ukrainian Farm Funding Limited, a Cyprus registered limited liability company that is used as a financial holding company for the Ukrainian farming operations.

EBRD Finance

USD 20 million revolving debt facility.

Project Cost

USD 70 million in working capital needs.

Environmental Impact

Screened IESE in accordance with the EBRD's 2008 Environmental and Social Policy which means an Initial Environmental and Social Examination of the project is necessary to determine the environmental and social impacts and issues associated with the project. It is likely that the impacts can be easily identified and mitigated and it is anticipated the project will be categorised B. The environmental and social due diligence is currently on-going and will include a review of the Company’s capacity and systems to manage environment, health, safety and labour issues in compliance with Ukrainian regulations and the EBRD's Performance Requirements (PRs).

Based on the results of due diligence, if necessary, an Environmental and Social Action Plan (ESAP) may be prepared and agreed with the Company to address any environmental and social issues identified within a reasonable time-frame. This PSD will be updated when the results of due diligence are known.

Technical Cooperation

None.

Company Contact

Dmitry Dragun
Mobile: +380673246918
Work: +380445949440
E-mail: ddragun@ukragrinvest.com.ua

 

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

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

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.