The loan will provide pre- and post-harvest financing essential for the successful operations of this export-oriented business, EBRD said. By supporting this project, EBRD is pursuing its strategy to develop the local agribusiness sector, which is currently responsible for at least 16% of Ukraine’s global domestic product (GDP).
IMC Group will also become the first Ukrainian company to undergo an EBRD-commissioned assessment of resource efficiency and climate change adaptation. The assessment, which will draw on best practice in the management of climate risk, will help IMC Group review its current farming and cultivation practices and compare them with the best international practice, EBRD said. The company is also expected to develop a strategy based on analysis of the risks and effects of climate change on IMC Group’s operations and cost structure.
At the end of June, EBRD had made a total cumulative commitment of almost €12 billion through 364 projects since the start of its operations in the country, EBRD said.
Recent EBRD projects in Ukraine include:
• An uncommitted trade facility of up to €10 million ($11,200,619) to Credit Agricole Ukraine (CAU) under its Trade Facilitation Program (TFP), announced in March. The TFP promotes international trade to, from, and within the EBRD countries of operations, including Ukraine.
• A $20 million revolving working capital facility to Ukrainian Agrarian Investments (UAI), which operates over 70 farms located across northern and western Ukraine, announced in January. The proceeds will be used both for pre- and post-harvest financing needs of a leading domestic agribusiness holding.
• A $5 million loan to LLC V.V. Kischenzi, a privately owned diversified agricultural producer based in the Cherkassy region of central Ukraine, announced in January. Kischenzi, operates a variety of businesses ranging from grains and vegetables growing to dairy and pig farming.
• A loan of up to $85 million for Ukrainian agribusiness producer PJSC Myronivsky Hliboproduct (MHP Group), announced in December 2015. The funds will support the development and expansion of the group’s grain and fodder business
• A $65 million working capital syndicated facility to Kernel Group, one of the largest vertically integrated agribusiness holdings in the country, announced in June 2015.