- US$57 million EBRD loan to Kernel Group as part of US$200 million syndication
- Funds to benefit farmers and support Kernel’s climate action strategy
(PRESS RELEASE) LONDON, 16-Apr-2021 — /EuropaWire/ — The European Bank for Reconstruction and Development (EBRD) announces that it is providing Kernel Group, a diversified agribusiness company operating in Ukraine, with US$ 57 million loan which will maintain the procurement, storage, transportation and export of agricultural commodities.
The loan is part of a US$ 200 million syndication arranged by the French investment bank Natixis.
Kernel Group is the largest producer and exporter of sunflower oil in Ukraine and a major supplier of agricultural products from the Black Sea region to world markets. Agricultural exports remain a key driver of the Ukrainian economy.
The new financing will help the group enter the new harvest season with sufficient working capital to buy crops and prepare them for export, making full use of its newly expanded infrastructure. The loan will also enable the company to continue and increase its prepayments to farmers, which is particularly important for fuelling growth of small agricultural firms in Ukraine.
As part of its cooperation with the EBRD, Kernel Group has committed to strengthening its climate corporate governance. The company will start developing a climate change strategy, define decarbonisation targets, and improve climate-related disclosures and climate risk management.
The EBRD is the largest institutional investor in Ukraine. In the past two years alone, the Bank has committed €2 billion to the economy. The investments are combined with support for policies that promote the fight against corruption, good governance of state-owned enterprises, structural reforms and a more transparent business environment.
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