EBRD provides syndicated loan to major Ukrainian sunflower oil producer
A working capital loan to support ViOil’s operations, provide pre-financing to farmers, launch new products
----------------
The
European Bank for Reconstruction and Development (EBRD) is arranging an US$ 40 million syndicated working capital loan to a Ukraine’s major Ukrainian sunflower oil producer and exporter Industrial Group ViOil (ViOil). In doing this, the Bank is allocating new funds to support primary food processing — an important sector for the revival of the Ukrainian economy.
The facility will consist of an A-loan of up to US$ 20 million for the EBRD’s own account and a B-loan of up to US$ 20 million, which will be syndicated to to ING Bank N. V. The proceeds of these loans will finance ViOil’s working capital needs associated with its oilseeds crushing operations.
Ukraine’s oilseed crushing industry was responsible for nearly half of the world’s sunflower oil output in 2014. ViOil is a good example of an export-oriented domestic business: this financing fits well into the Bank’s crisis response strategy for the agribusiness sector in Ukraine.
The deal will also help ViOil provide much-neededpre-financing to local farmers supplying oilseeds to the Group, and support the launch of joint production of high-oleic crops and oil with local farmers.
Ukrainian agribusiness remains a key sector for the EBRD, which committed funding worth over ˆ250 million in 2014 alone.
The EBRD is the largest international financial investor in Ukraine. As of 1 July 2015, the Bank had a total cumulative commitment of ˆ11 billion in 345 projects in the country. #### The EBRD, owned by 64 countries and two intergovernmental institutions, is supporting the development of market economies and democracies.
