23 June 2017

Nibulon to receive funding to boost food security

KIEV, UKRAINE — Nibulon, the largest grain trader in Ukraine, is set to receive a financing package worth up to $100 million from a group that includes the International Finance Corp. and other lenders. The funds are expected to be used to help Nibulon strengthen agri-related infrastructure, reduce crop losses, and enhance global food security.

Under terms of the financing, the 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%, the IFC said. In addition, Nibulon plans to use the funds to modernize and expand its shipping terminals and to refinance short-term debt.

Nibulon sources its agricultural commodities from more than 4,700 farmers across the country and adds value through cleaning, drying, securing storage, and transportation. The company 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, chief executive officer 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% of the world’s wheat trade, 15% of the world’s corn trade, and 20% of the global trade in barley, the IFC said. 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.”


Source: http://www.world-grain.com