The European Bank for Reconstruction and Development (EBRD) is making a US$15mn revolving credit facility available to the Russian and Ukrainian subsidiaries of
The facility will help Nidera expand its grain trading business in Russia and Ukraine and provide additional liquidity to the primary agricultural sector in those two countries. This is line with the EBRD’s efforts to boost lending against agricultural commodities in Ukraine and Russia through the introduction of legislation that permits warehouse depository receipts to be used as collateral for loans.
The EBRD is very pleased to be able to work with Nidera on this transaction, which provides another practical example of how to lend against agricultural commodities, says Hans Christian Jacobsen, the EBRD’s director for agribusiness. The deal will help inject much needed cash into the agricultural production cycle in Russia and Ukraine, which should improve productivity in the long term, he adds.
Karel Valken, finance director of Nidera, says the deal is part of Nidera’s growing presence in Eastern Europe, which it considers a market with great potential.
The EBRD has now signed 176 investments in the agribusiness sector totalling more than €3bn, including €1bn in Ukraine and Russia.