BSTDB Assists Growth of Bulgarian Agribusiness
Press Release | 29-Jun-2020
The Black Sea Trade and Development Bank (BSTDB) provided a EUR 35 million trade finance loan to Oliva AD, the leading vegetable oil producer in Bulgaria. The BSTDB financing is part of a EUR 90 million syndicated facility provided by a group of international commercial banks, with BNP Paribas Suisse SA acting as Lead Arranger.
The financing will support the company’s working capital needs for operating its new sunflower and rapeseed crushing and extraction plant in Varna region doubling Oliva’s current production capacity and boosting its exports. Bulgaria is the world’s fourth largest exporter of sunflower oil and Oliva is a significant contributor to this.
“Agricultural sector is critical for Bulgaria’s economic growth. We are happy to assist the leading Bulgarian producer and exporter of sunflower oil to expand its business in the Black Sea region. The operation has a multiple development impact on the Bulgarian economy by increasing export and tax revenues, and supporting employment in rural areas,” said Dmitry Pankin, BSTDB President.
“This syndicated loan facility is a step to further growth and development for Oliva. It is not only the financial stability and flexibility that we get in satisfying our borrowing needs, it is also a testament for Oliva’s position in the Black Sea market and the degree of trust we get from BSTDB and commercial banks from across the globe. This facility will help us to consolidate our position and bolster our strategic growth,” said Angel Georgiev, Oliva CEO.
Oliva AD, part of Buildcom Group, is the biggest producer and trader of sunflower oil in Bulgaria. Oliva joined the Group in 2001 and since then, organically growing, has reached the leading position in the Bulgarian crushing market. Today Oliva has strategically located three factories and grain storage bases, covering the whole North Bulgaria, where the predominant part of sunflower seeds is grown. The group generates annual income above EUR 500 million, as more than 80% is generated by exports.
The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Turkey, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. BSTDB is rated long-term “A-” by Standard and Poor’s and “A2” by Moody’s. For information on BSTDB, visit www.bstdb.org.