The European Bank for Reconstruction and Development (EBRD) has organised a new syndicated facility of up to US$ 130 million to Ukraine’s leading grain trader Nibulon for the ongoing crop harvesting and marketing season. It will replace the syndicated loan of US$ 125 million signed in 2012 and expired in June 2014.
The new facility will consist of an A-loan of up to US$ 30 million for the EBRD’s own account and a B-loan of up to US$ 100 million, which will be syndicated to commercial banks. Several banks, including ING and ABN Amro have already committed their participation, which demonstrates the continued support of international financiers in Ukraine’s agribusiness.
The transaction will support the Bank’s long standing client Nibulon through funding Nibulon’s working capital needs associated with crop origination, primary processing and storage in the current environment of reduced availability of external funding in Ukraine.
The EBRD is the largest financial investor in Ukraine. As of end-July 2014 the Bank had committed €9.2 billion (US$ 12.3 billion) through 329 projects in the country.