EIB Backs Agria Group Holding’s Sunflower Oil Plant and Sustainable Transport in Bulgaria with €35 Million Loan

EIB Backs Agria Group Holding’s Sunflower Oil Plant and Sustainable Transport in Bulgaria with €35 Million Loan

(IN BRIEF) The European Investment Bank (EIB) has partnered with Kristera AD, a subsidiary of Agria Group Holding, to provide a €35 million loan for the construction of a new sunflower oil processing plant in northern Bulgaria and the acquisition of railcars for edible oil transport. Supported by the InvestEU program, this initiative aims to promote EU policy priorities like sustainability and innovation while mobilizing over €372 billion in additional investment by 2027. The project, with a total cost of €75 million, will enhance Agria Group Holding’s sunflower seed production, create jobs, and bolster rural sustainability. The plant will employ green, waste-free technology and generate renewable energy from sunflower seed hulls, reducing greenhouse gas emissions during product transport to Bulgaria’s Black Sea port of Varna.

(PRESS RELEASE) LUXEMBOURG, 4-Jan-2024 — /EuropaWire/ — The European Investment Bank (EIB) has signed an agreement with Kristera AD, part of Agria Group Holding, for a €35 million loan to co-finance the construction of a new sunflower oil processing plant in northern Bulgaria and the acquisition of railcars to transport edible oils.

This agreement is backed by the InvestEU programme, which aims to trigger more than €372 billion in additional investment between 2021 and 2027. The InvestEU programme mobilises investment for EU policy priorities such as the green transition, competitiveness, innovation and sustainable infrastructure.

Thanks to InvestEU and the EIB’s support, Agria Group Holding, which is one of Bulgaria’s leading grain producers and grain traders, will optimise its own production of sunflower seeds and improve its access to export markets. With a total estimated cost of about €75 million, the project will also create new jobs and promote sustainability and resilience in rural areas.

The new processing plant for crude sunflower oil will be built in the town of Popovo in northern Bulgaria. It will use waste-free, green technology, generating climate benefits by producing renewable energy based on discarded sunflower seed hulls. The project is expected to become operational in the second half of 2027. It also includes the purchase of railcars to transport the product to Bulgaria’s Black Sea port of Varna, thus cutting greenhouse gas emissions from road freight transport.

“We are glad to extend our support for the agricultural sector in Bulgaria with this new agreement with Agria Holding Group aimed at modernising and expanding its operations. It is a project that will boost the country’s regional and economic development in a sustainable manner, financing investment in a less developed EU region, and thus promoting social cohesion and equitable growth,” said European Investment Bank Vice-President Kyriacos Kakouris.

“This project is of utmost importance for the group as it creates an opportunity to significantly diversify the trade turnover, reduce trade dependencies and enter new end markets and destinations,” said Agria Group Holding Chief Executive Officer Emil Raykov. “Additionally, this project has great regional and economic importance, as it will create a significant number of new jobs, improve and optimise the logistics of raw materials by replacing them with manufactured end products, and lead to substantial economies of scale from a financial and operational management point of view.”

Background information

The InvestEU programme provides the European Union with crucial long-term funding by leveraging substantial private and public funds in support of a sustainable recovery. It also helps mobilise private investments for the European Union’s policy priorities, such as the European Green Deal and the digital transition. The programme consists of three components: the InvestEU Fund, the InvestEU Advisory Hub and the InvestEU Portal. The InvestEU Fund is implemented through financial partners that will invest in projects using the EU budget guarantee of €26.2 billion. The entire budget guarantee will back the investment projects of the implementing partners, increase their risk-bearing capacity and thus mobilise at least €372 billion in additional investment.

Agria Group Holding AD is a Bulgarian holding group, which, through its subsidiaries, operates in the field of agricultural production, grain and oilseed storage and trade. It is also active in the processing industry, including the production of bioethanol. The company has three main logistics centres in north-eastern Bulgaria. The holding’s grain facilities store and trade about 750 000-800 000 tonnes of grains and oilseeds annually.

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SOURCE: European Investment Bank