Financed ProjectsKernel Pre-Export Finance Facility

Identification Code:

OP/15/0021

Total Operation Cost:

350.000.000

Maturity:

12 months

Operation Status:

Description and Purpose of the Operation:

Syndicated Secured Finance Facility for the amount of USD 320m to Kernel Group, Ukraine. The proposed Facility will be used to finance the group's sunflower seeds' purchases, their storage period and their processing period until the seeds have been processed into the commodities and exported

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Consumer Staples

Domain:

Private

Borrower/Client:

Kernel Group.

Co-Financiers/Participants:

A syndicate of banks led by the Coordinating Mandated Lead Arrangers: ING Bank NV and UniCredit Bank Austria AG

Guarantors/Sponsors:

Relevant operating and trading companies of Kernel Group.

Developmental and Regional Cooperation Impact:

The Kernel Facility is consistent with the Bank's operational priorities as outlined in the BoD approved Country Strategy for Ukraine 2015-2018, which states: "The primary objective in the manufacturing sector will be support of local companies in their efforts to improve efficiency of operations and modernize their technological base.... "Work with medium- and large-scale export-oriented Ukrainian companies ."And in terms of areas of focus includes: "Agribusiness and food processing industry;" and "Agricultural production". The oil seeds to be processed by 7 Ukrainian producers are of Ukraine origin and are sourced from Kernel's Group farming division (6-9%) and another 5000+ Ukrainian farmers. Kernel exports its products all over the world but Turkey is the number three destination of sunflower oil exports, representing 10% of the total (FY2014).

Environmental Classification and Impact (summary):

Screened B+, has the potential to generate medium to high E&S risks and impacts that may propagate beyond the site boundaries, but which are largely reversible and can be addressed through relevant mitigation measures.

Operation Leader:

General Industries, Transport, Tourism 1

E-mail:

gitt1@bstdb.org