Last Updated January 25, 2008
ABN Amro and ING have signed a dual-tranche US$300mn financing package for Ivolga Group, an agro-industrial group active in grain production and trade throughout the CIS. The facility features a US$100mn pre-export finance tranche, carrying a tenor of three-years and paying 200 basis points. The other tranche is a US$200mn borrowing base with a tenor of 18 months and paying 160bp.
The deal is based on pledged commodities, mainly grain and sugar, a small portion of fixed assets, receivables, assignment of sufficient export and sales contracts, and pledge on collection accounts.
Overall collateral value is 125% of the exposure allowed under the facility. Ivolga and Ivolga group companies have provided guarantees and relevant security.
The facility was syndicated and was oversubscribed. Joining as mandated lead arrangers were KBC, Natixis and Rabobank and Erste Bank joined as co-arranger.
Ivolga Group is the largest grain producer in the CIS region, producing around 1.4mn tonnes of grains in 2006, and 1.6mn tonnes in 2007. It also has significant storage capacity enabling it to trade large volumes of grain.
The borrower is also active in milling, sugar production and distribution of petroleum products.
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