The EBRD and ING Bank are lending US$30mn to Ukraine’s newest oilseed crushing plant, near the Ukrainian port city of Odessa. It is the EBRD’s first project in the region.
The revolving credit is for Illichevskiy Maslo Extractionniy Zavod (IMEZ), a 50/50 joint venture between ADM Nederland, a subsidiary of US-based Archer Daniels Midland, one of the world’s largest oilseed processors, and Risoil, a Swiss-registered agricultural trading company and port operator.
The EBRD will hold an “A “loan of US$15mn and remain lender of record for the whole facility, while ING takes the full “B “loan of US$15mn, with ING Ukraine acting as local security agent and payment bank.
The IMEZ plant, in the port of Illichevsk outside Odessa, will produce crude sunflower oil and sunflower meal.
Hans Christian Jacobsen, director of agribusiness at the EBRD, says the loan will help support investment in a sector – edible oil – where Ukraine has a competitive advantage due to its typical surplus in sunflower seeds, low costs of production and geographical position. The project is the latest of an array agri-commodity finance provided by the bank throughout the region.
Director of Risoil SA Ukraine, Igor Yanchev, says: “Risoil has found a partner for this project in ADM and the project represents a logical extension to its trading and infrastructure activities in the region.”
The EBRD is the largest investor in Ukraine, with €1.7bn in 67 projects. Across its 27 countries of operations, the bank has invested €3.3bn in more than 220 agribusiness projects.