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Agribusiness in the Ukraine
The EBRDs involvement in the agribusiness sector spans all activities throughout the production chain, from farming, processing and trading to food distribution, packaging and retail. The Bank also plays a major role in developing the sector by supporting local and foreign corporate clients as well as micro, small and medium-sized enterprises.
At a glance the total number of projects is 383 with a net business volume of €5.4 billion giving a total project value of €13.6 billion.
In the Ukraine alone Gilles Mettetal, EBRD Director for Agribusiness, said: “Since the beginning of 2011 we have already signed 9 transactions in this sector in Ukraine worth over €150 million. This shows our commitment to the sector and to Ukraine, which is poised to regain its position of a major breadbasket in the world”. In the agribusiness sector alone, the EBRD has directly committed more than €7 billion in over 440 projects across central and eastern Europe and the Commonwealth of Independent States since 1991.
The EBRD offers various forms of financing, including tailored long-term loans, working capital loans, commodity finance, equity, guarantees and multi-project facilities. Each is individually designed to meet the changing needs of agribusiness clients across the region.
There was an unprecedented level of activity in the agribusiness sector, with a record 63 transactions, worth €836 million, spread across 20 countries. These transactions constituted over one‑third (36 per cent) of the Bank’s corporate sector signings in 2010 by volume and attracted a further €244 million through syndication. Of those signed, 26 projects, worth €63 million, were in countries at the earlier stages of transition.
In the Western Balkans, the EBRD signed 13 transactions and worked to support the growth of trade links between the former Yugoslavia’s seven successor states, including a €58 million project with Croatia’s Atlantic Grupa. The Bank also organised the first Western Balkans’ Food, Beverage and Retail Conference in Zagreb, which as very successful and will be transformed into an annual event.
A shift towards supporting primary agriculture and the grain value chain in 2010 was reflected in many projects with new EBRD clients, including Nibulon in Ukraine (see ase study overleaf), the US farmers cooperative CHS (regional), Noble (Turkey), Sodrugestvo (Russia), Rencap (Ukraine) and many other smaller projects.
