EUROPE – Luxembourg-headquartered agricultural commodity processor and trader Sodrugestvo Group has secured US$90 million in financing from the European Bank for Reconstruction and Development (EBRD) to support it regional expansion.
Founded in 1994, Sodrugestvo Group owns some of the largest soybean processing complex in Europe and ranks among the top 20 soybean processors in the world.
The company has more than 30 subsidiaries located in some 20 countries, including in Belarus, Brazil, Paraguay, Poland, Russia, Serbia, Turkey and Ukraine through which it manufactures proteins and oils and distributes agricultural commodities globally.
The financing from EBRD will be used to enhance Sodrugestvo’s operations in its Turkish and European subsidiaries.
In Turkey, a US$80 million EBRD loan will support foreign direct investment by financing the acquisition by Sodrugestvo of a multi-seed crushing plant in Izmir from Altinyag, a soybean processing company.
The new entity will allow Sodrugestvo to considerably improve service to its customers in Turkey and MENA.
Sodrugestvo plans to improve the efficiency of its Turkish subsidiary by bringing it up to company standards, increasing profitability and sustainability.
The company is working on the transformation of its Turkish facilities into a regional hub and a leading soybean processor in the country and the Mediterranean region.
Sodrugestvo will use an additional US$10 million to increase the number of its agricultural suppliers in eastern Europe.
“Sodrugestvo Group constantly works on broadening its funding sources to back its operations and expansion plans and we welcome EBRD as a strategic partner helping us in our regional growth initiatives,” commented Aleksandr Lutsenko, CEO of Sodrugestvo.
“Our company pays special attention to sustainable development and environmental protection matters in its business. EBRD support is an important footprint in this area,” he added.
“EBRD financing fits into our funding strategy with particular focus on diversification, extension of debt maturities and control over borrowing costs” said the group CFO Sergey Churkin
“Working with EBRD brings more visibility and recognition on international markets and confirms Sodrugestvo Group as a reliable and high quality borrower.”