UKRAINE – The European Bank for Reconstruction and Development (EBRD) has provided a loan of up to US$27 million to Nibulon, Ukrainian agricultural company specializing in production and export of grains, to maintain the volume of trade operations amid the COVID-19 pandemic.
“The funding will meet the working capital needs for purchasing, processing, storing, transporting and exporting agricultural products,” EBRD Senior Advisor for External Affairs Anton Usov said on Facebook.
The financing is part of the EBRD Solidarity Package, which focuses on ensuring continuity of key businesses and services threatened by the economic impact of Covid-19.
The EBRD expects to dedicate its total business investment of up to US$23.64 billion in the period 2020-21 to combat the coronavirus crisis.
The project is supported by grant funding provided by Japan-EBRD Technical Cooperation Fund. Grant funds will partially cover external legal costs.
Nibulon Group is a longstanding EBRD client. In 2018, the EBRD provided a US$50 million loan to increase grain exports by improving logistics and developing the associated infrastructure.
The company was founded in 1991. It has 27 transshipment terminals and complexes for accepting, storage and shipment of grains and oil seeds (388 silo-type granaries), a fleet of up to 72 units, and Mykolaiv Shipyard.
It is the only agricultural company in Ukraine with its own fleet and shipyard. During its development, Nibulon expands its geographic reach and its range of production activities methodically. The company has 22 production units located in nine regions of Ukraine.
Nibulon achieves high crop yields and qualitative agricultural commodities on leased agricultural land by improving modern technologies, sowing best seeds supplied by leading companies and using modern import tillage machinery.
The diversification of production activities by climatic zones enables Nibulon to reduce natural risks of crop losses caused by weather fluctuations in different regions of Ukraine and to ensure the annual high yields of grain and oil crops. In addition, crop condition comparing increases the accuracy in crop yield forecasting in the marketing period.
The EBRD generally being the largest international financial investor in Ukraine, has made a cumulative commitment of almost US$17.29 billion to date across 472 projects since the start of its operations in the country in 1993.
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