UCSF: Nibulon

Location:

Ukraine

Project number:

46577

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

11 Nov 2014

Status:

Complete

PSD disclosed:

13 Oct 2014

Translated version of this PSD: Ukrainian

Project Description

The EBRD is considering provision of working capital financing to Nibulon Group (“Nibulon”). The proposed senior secured loan finance Nibulon’s working capital needs associated with agri-commodity trading operations.

Transition Impact

The proposed project is part of EBRD’s Ukrainian Corporate Support Programme and Private Sector for Food Security Initiative.

The main impact from the project relates to the provision of necessary working capital to one of the major grain sourcing companies in Ukraine during times of local liquidity constraints in the country. In addition, the project is intended to safeguard transition impact from the existing operation of the EBRD with Nibulon Group in Ukraine which promotes development of grain storage infrastructure, facilitate market expansion and enhance the Bank’s policy dialogue in primary agriculture / trading section in Ukraine.

The Client

Nibulon Group is one of the leading vertically integrated agricultural commodity trader and agricultural producers in Ukraine.

EBRD Finance

Up to US$ 26 million senior secured revolving loan.

Project Cost

Up to US$ 400 million : the financing needs of the project fluctuate based on the seasonal trading activities of Nibulon.

Environmental Impact

The Project has been categorised B in accordance with the EBRD Environmental and Social Policy.  

The Environmental and Social Due Diligence (ESDD) completed in 2012 concluded that Nibulon has HR and OHS Departments with staff responsible for HR and OHS issues at the Group's production sites. All OHS documentation (including procedures and instructions) required by local legislation is developed and available at all production sites.  A three-stage OHS compliance monitoring system is in place and OHS training is performed on a regular basis. Emergency response plans are developed for hazardous facilities.

Assessment of high risk dust explosion potential was undertaken by independent consultants in March 2011 and resulted in some recommendations that will be further implemented by the Company.  The Nibulon Group has adequate corporate systems in place to manage their environmental, health and safety (EHS) issues at both the corporate and site level. The Group is substantially compliant with local EHS regulatory requirements. All sites have dedicated EHS and hygiene engineers and a HR manager. Nibulon has an advanced supply chain management system adhering to the international standards and undertakes regular audits of the suppliers, hence contributing to the establishing of high quality standards in the industry and improving the suppliers’ quality performance.

Nibulon has demonstrated commitment to the Environmental and Social Action Plan (ESAP) and since the beginning of the Project the Group has implemented all required measures by the ESAP in timely and diligent way.  Nibulon will be required to continue to provide annual environmental and social reporting to the Bank to ensure on-going compliance with the Bank’s PRs.

Technical Cooperation

None.

Company Contact

Olga Babanina
Acting Head of Financial Department
Nibulon Agricultural LLC
1 Kabotazhny Spusk,
Mykolayiv 54002, Ukraine

Tel: (0512) 76-62-52
E-mail: OBabanina@nibulon.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

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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.