The European Bank for Reconstruction and Development (EBRD) is providing
a $20 million revolving working capital facility to Ukrainian Agrarian
Investments (UAI), which operates over 70 farms located across northern and
western Ukraine, the EBRD said in a statement.
"I want to underline how important the
agribusiness sector is for the Ukrainian economy and for our operations in the
country. We are very pleased to sign this transaction because it gives us an
opportunity to continue to support the growth of a strong local company. This
new loan demonstrates our strong commitment to UAI as a long-term
partner," EBRD Director for Ukraine Sevki Acuner said in the statement.
The loan replaces the previous financing facility of
$13 million provided to UAI in 2014. The proceeds will be used both for pre and
post-harvest financing needs of the leading domestic agribusiness holding.
"By extending the new facility to UAI, the Bank
is once again demonstrating its commitment to support its strong existing
clients in one the most important sectors of the Ukrainian economy. The EBRD is
planning to pledge additional support in order to help agribusiness companies
address their liquidity and working capital needs as well as to restore the
market’s confidence and appetite for future projects in the country," the
statement reads.
UAI has been working 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 in the times when availability of funding
in Ukraine has reduced significantly.
The EBRD says that Ukrainian agribusiness remains a
key sector for the Bank, which committed funding worth over EUR 175 million in
2015 alone.
The EBRD is the largest international financial
investor in Ukraine. As of January 1, 2016, the Bank had a total cumulative
commitment of approximately EUR 12 billion in 357 projects throughout the
country.
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