EBRD to provide up to USD 50 million loan to Ukrainian farms

15:53, 24 February 2009
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For ultimately better crop yields

Financing of pre- and post-harvest working capital needs of farms majority owned by NCH New Europe Property Fund L.P. (“Fund”) in Ukraine. The Project is aimed to assist the farms in achieving higher efficiency and ultimately better crop yields, Cbonds reported.

The Project is expected to enhance the competitiveness of the Ukrainian primary agriculture through the following: significant improvements in the efficiency and productivity of operations of the Fund`s farms on the existing agricultural land and development of cultivation on previously fallow land, introduction of international expertise and modern farming technologies at the Fund’s farms, demonstration of efficiency and technological improvements in agriculture, knowledge transfer to employees and other farms, generation of above average yields, and the application of the Warehouse Receipts System (when operational) by the Fund’s farms.

NCH New Europe Property Fund L.P. is a property fund, which is fully invested in a mix of real estate assets and farming companies in Eastern Europe and the former Soviet Union. The Fund owns, via its majority stakes in three Ukrainian joint ventures (the “JVs”), 35 farms and elevator companies in Ukraine.

EBRD finance:

Up to USD 50 million long-term revolving loan.

Total project cost:

Working capital needs are estimated to amount to USD 70-100 million.

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