Kyiv, Ukraine, June 19, 2017—IFC,
a member of the World Bank Group, has arranged a financing package worth
up to $100 million for Ukraine’s largest grain trader, 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.
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.
About IFC
IFC, a member of the World Bank Group, is
the largest global development institution focused on the private sector
in emerging markets. Working with more than 2,000 businesses worldwide,
we use our capital, expertise, and influence to create markets and opportunities
in the toughest areas of the world. In FY16, we delivered a record $19
billion in long-term financing for developing countries, leveraging the
power of the private sector to help end poverty and boost shared prosperity.
For more information, visit www.ifc.org
Stay Connected
www.facebook.com/IFCwbg
www.twitter.com/IFC_org
www.youtube.com/IFCvideocasts
www.ifc.org/SocialMediaIndex
www.instagram.com\ifc_org