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Kernel Group PXF 2024

Ukraine | Consumer Staples

Identification Code:: OP/24/0021
Total Operation Cost:: 150.000.000 USD
Maturity:: 7 months
Operation Status:: BSTDB Approved Amount – Approval Date

25.000.000 USD – 29 Aug 2024
: BSTDB Signed Amount – Signed Date

-25.000.000 USD – 30 Apr 2025

25.000.000 USD – 16 Oct 2024
: Status:
Cancelled
Description and Purpose of the Operation:: Provision of a pre-export finance facility for Kernel Group, a leading player in Ukraine’s agricultural sector and one of the world’s largest sunflower oil exporters. The BSTDB funds will help the company have the necessary working capital to procure, process, store, and transport oilseeds and vegoils, ensuring their export to global markets.
Countries of Operation:: Ukraine (100,00%)
Financial Product:: Trade Finance
Sector:: Consumer Staples
Domain:: Private
Borrower/Client:: Inerco Trade SA, Switzerland, a trade company of Kernel Group
Co-Financers/Participants:: A syndicate of banks led by the Coordinating Mandated Lead Arrangers: ING Bank NV and Rabobank UA.
Guarantors/Sponsors:: Guarantors/Sureties: Relevant operating and trading companies of the Group, Ukrainian and Luxembourg holding companies Sponsor/Group’s Parent Company: Kernel Holding SA, Luxembourg
Developmental and Regional Cooperation Impact:: The beneficiary is involved in agribusiness and exports a significant amount of their production. Given the importance of agribusiness in Ukraine, it would be fair to expect a developmental impact from the operation. Similarly, as the company is a major exporter, the operation will have a regional integration element, too. The production and exports of vital agricultural goods is not only sustaining a vital industry that feeds millions but is actively contributing to the economic resilience and recovery of Ukraine.
Environmental Classification and Impact:: Screened E&S Category B with medium risks and impacts that can be addressed through relevant mitigation measures. The due diligence focused on issues of land use, agricultural practices and whether these could lead to soil and water degradation, product safety management and control, labor practices, pollution prevention and control especially at the grain elevators, oil processing plants and port terminals, as well as the issues related to the supply chain, as well as impacts and risks to the local communities including that of fire and explosion. The employed mitigation measures were generally found adequate and in line with existing good practices.
Operation Leader:: General Industries, Transport, Tourism 1
E-mail:: gitt1@bstdb.org