Noble subsidiary wins EBRD funding

The European Bank for Reconstruction and Development (EBRD) has agreed a US$24mn loan to Noble Resources Ukraine.

The wholly-owned subsidiary of Noble Group will use the funds for investments in grain infrastructure and processing facilities in Ukraine.

Specifically, sourcing and storage of commodities like grain and oilseeds, and their subsequent export to European markets, is the focus for the project.

EBRD would not comment on the pricing of the loan, but did tell GTR that the funding offered to Noble Ukraine is a long-term loan.

Furthermore, third-party silo operators will see benefits from the deal, as Noble Resources plans to work with regional businesses to encourage improvements and practices at their facilities.

The EBRD has established a strong relationship with the Noble Group, after providing Noble Resources with a US$50mn revolving credit facility, which became active in October 2009 and a Turkish subsidiary of the group, Noble Hammade Ticaret, with a US$30mn syndicated working capital facility in March this year.

A spokesperson for the EBRD tells GTR: “EBRD's extensive regional knowledge and experience provides Noble with a strategic partnership that supports the group's long-term goal of expanding into Eastern Europe. The long-term loan will help Noble develop its supply chain in this part of the world”

Gilles Mettetal, director for agribusiness at the EBRD, says: “The project promotes further efficiency improvements in the grain infrastructure sector and fully fits into the bank’s agribusiness strategy for Ukraine. We are pleased to work with a committed long-term sponsor willing to invest in the agricultural sector, which is very important for the revival of the Ukrainian economy.”

This deal further secures the EBRD as the largest financial investor in Ukraine, providing over €5bn (US$6.47bn) through nearly 200 projects as of May 1, 2010.