The FINANCIAL -- IFC, a member of the World Bank Group, has arranged a financing package worth up to $100 million for Ukraine’s one of the largest grain traders, Nibulon, to help strengthen agri-related infrastructure, reduce crop losses, and enhance global food security.
IFC will provide up to $60 million for its own account in debt financing and mobilize approximately $40 million from other lenders. The package will support Nibulon’s plans to boost its trading volumes to about 7 million tons in the next four years—an increase of nearly 40 percent. The financing will also be used to modernize and expand Nibulon’s shipping terminals and to refinance short-term debt, according to IFC.
Nibulon sources its agricultural commodities from over 4,700 farmers across the country and adds value through cleaning, drying, securing storage, and transportation. The company actively invests in developing river transportation that provides a cost-efficient and more environmentally friendly alternative to rail and truck transport.
“We are working on a long-term investment program that will also strongly contribute to developing Ukraine’s agricultural sector,” said Oleskiy Vadatursky, CEO of Nibulon. “Last year, we managed to optimize transport costs for grain delivery, reduce delivery times, and free up roads in several regions. In the next two to three years, we plan to create a modern system to store and transport grain.”
Ukraine is a global leader in producing grains and oilseeds, accounting for about 10 percent of the world’s wheat trade, 15 percent of the world’s corn trade, and 20 percent of the global trade in barley. The country has the potential to further increase its grain production and play a bigger role in global food security.
“This investment is well-aligned with our strategy to help Ukraine maximize its agribusiness potential through modernization and better access to finance and knowledge,” said Jason Pellmar, IFC’s regional head for Ukraine and Belarus. “Unleashing that potential will help increase exports, create jobs, boost Ukraine’s economy and contribute to global food security.”
IFC is a leading international investor in Ukraine’s agribusiness sector, supporting the entire value chain, from farm production to collection, processing and distribution. IFC also offers an extensive advisory program, including projects focused on improving food safety standards, maximizing resource efficiency, and developing the country’s agri-finance and agro-insurance markets.