Standard Bank Plc, ING Wholesale Banking and Raiffeisen Bank Aval as mandated lead arrangers, Unicredito Ukraine as a lead arranger, and Erste Bank London as a participant have completed a US$100mn three-year structured pre-export facility in favour of Grain Trading Company Limited (GTC), one of Ukraine’s largest producers of crude sunflower oil.
The facility is split into two US$50mn facilities: the first for the refinancing of GTC’s existing bank debt and new capital expenditures, with a three-year tenor, and the second for the financing of annual working capital needs.
This transaction sets a new benchmark for international financing of the primary agricultural processing sector in Ukraine, because of its longer than usual tenor and its security package which partially relies on fixed assets.
GTC has continued to improve and expand its position in the Ukrainian agribusiness sector and this transaction recognises this, through the provision of long-term financing to a company operating in a sector which is highly dependent on the annual cycles of the production of agricultural commodities in Ukraine and worldwide.
GTC is a leading Ukrainian trader engaged in operations with oilseeds and sunflower oil. The company’s operational activities support the business development of GTC Allseeds Ukraine with annual turnover of about US$350mn and 16% of Ukrainian sunflower oil export market.
The group also includes two oilseeds crushing plants, an extensive logistic network in Ukraine and offices in Geneva, Switzerland and Cairo, Egypt. The funds will allow the group to develop their new port facilities in Nikolaev, Ukraine.
The strategic importance of Ukraine for the supply of oils (sunflower seed and rapeseed) for the food and the biofuel industry and the direct access to Black Sea trans-shipment routes represent excellent growth opportunities for the company.