Translated version of this PSD: Ukrainian
The Loan will be provided under the Ukrainian Corporate Support Facility. As such, it is part of the Bank's effort to support existing clients during the economic and political turmoil culminating in the recent events in Ukraine. In the context of the liquidity crisis affecting Ukrainian companies, the Loan will enable an existing client of the Bank to secure enough working capital financing to farm 195,000ha in the 2016/2017 seasons.
By assisting this project, the EBRD commits more funds to one of the most important and promising sectors of the Ukrainian economy in order to help agribusiness companies address their liquidity and working capital needs. The loan will also help restore the market's confidence and appetite for future projects in the country.
The main source of transition impact of the project will derive from market expansion and keeping into production farmland that hasn't been utilised for a number of years. This entails a significant amount of skills and know-how transfer as well as demonstration of mini-till farming which is still very new to Ukraine and allows reduced fertiliser consumption, moisture conservation and reduced fuel consumption.
UKRAINIAN AGRARIAN INVESTMENTS
Ukrainian Agrarian Investments (UAI) has been working successfully with the EBRD since 2010. The loan proceeds will enable the company to fully secure its seasonal working capital needs to harvest 195,000 hectares at a time when the availability of funding in Ukraine is significantly reduced.
EBRD Finance Summary
The European Bank for Reconstruction and Development (EBRD) is considering up to US$ 20 million working capital facility to Ukrainian Agrarian Investments (UAI), which operates over 70 farms located across northern and western Ukraine. The loan will be provided under the Bank's €150 million Ukrainian Corporate Support Facility designed to support existing EBRD clients in the country.
Total Project Cost
Environmental and Social Summary
The Project has been categorised B. Environmental and social due diligence (ESDD) completed through previous projects with the Company concluded that it is substantially compliant with local EHS regulatory requirements. All sites have dedicated EHS and hygiene engineers and a HR manager. The Company 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. All OHS documentation (including procedures and instructions) required by local legislation is developed and available at all production sites. Emergency response plans are developed for hazardous facilities. The Company has demonstrated commitment to actions agreed with the Bank and the Company has implemented all required measures in the agreed ESAP in a timely and diligent way. The Company 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.
Company Contact Information
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Tel: +44 20 7338 7168
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Text of the PIP
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