LUXEMBOURG — Sodrugestvo Group plans to use a $130 million loan to boost cross-border cooperation and benefit local farmers, sourcing, transportation, processing and distribution of animal feed products.
Up to $25 million from the European Bank for Reconstruction and Development (EBRD) will be used by Sodrugestvo Trans-Agro, the largest private owner of grain-hopper railcars in Belarus for the acquisition of 216 hoppers. The new hoppers will decrease Sodrugestvo’s reliance on cargo services provided by state-owned railway companies and strengthen its market position.
Up to $55 million will be provided to Belagroterminal, the operator of a multi seed crushing plant, for balance sheet restructuring and for the construction of a biomass boiler house at its principal manufacturing site in Smorgon, north-western Belarus.
The biomass boiler house will help reduce annual greenhouse gas emissions by around 41,000 tonnes.
The remaining $50 million will be provided to support working capital needs of Belagroterminal.
Sodrugestvo will aim to establish closer ties with rapeseed and soybean farmers in Belarus and neighboring regions. Guaranteed off-take arrangements will stimulate primary agriculture and will promote cross-border trade.
The EBRD expects the entirety of its investments of up to €21 billion in 2020-21 to be dedicated to the response to and the recovery from the coronavirus pandemic.
Sodrugestvo Group owns and operates the largest soybean processing complex in Europe and ranks among the top 20 soybean processors in the world. Headquartered in Luxembourg, the company owns and operates production and port assets in Belarus, Brazil, Paraguay, Russia, and Turkey exporting manufactured and traded products to more than 60 countries.
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