Financed ProjectsKernel Capex Facillity

Identification Code:

OP/16/0007

Total Operation Cost:

56.000.000

Maturity:

20 months

Operation Status:

Description and Purpose of the Operation:

Syndicated Secured Finance Facility in the amount of USD 70m to Kernel Group, Ukraine. The proposed facility will be used to finance the Group's capital expenditure program for 2016-2017.

Countries of Operation:

Ukraine (100,00 %)

Financial Product:

Loans

Sector:

Consumer Staples

Domain:

Private

Borrower/Client:

Joint & several Co-Borrowers are Kernel Holding SA, a listed ultimate holding company, and Estron Corporation Ltd, a fully owned subsidiary of the Group.sk Port Ukraine.

Co-Financiers/Participants:

A syndicate of banks led by the Coordinating Mandated Lead Arranger: UniCredit Bank Austria AG

Guarantors/Sponsors:

Relevant operating and trading companies of the Group, Ukrainian and Luxembourg holding companies including: Kernel Trade LLC, Kernel Capital LLC, Restomon Ltd and Inerco Trade SA which are the Group's trading companies and port contracting companies essential for the port activities.

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 and to "Work with medium- and large-scale export-oriented Ukrainian companies." Kernel exports its products all over the world but Turkey is the number three destination of sunflower oil exports, representing 10% of the total. The Bank will support an important player in the agribusiness sector of Ukraine to obtain necessary capex financing at a time when external funding to businesses in Ukraine is severely limited.

Environmental Classification and Impact (summary):

Assigned Category B+. The operation 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