EBRD in US$ 20 million working capital loan to Ukraine’s Astarta
Project to support modern farming operations, promote high-skill career opportunities
EBRD, Kyiv, Ukraine,
Wed, Aug 22, 2018
- US$ 20 million working capital loan to Astarta Group – Ukraine’s leading, vertically integrated agricultural company
- Modern agricultural technologies will be applied in farming, soybean processing and sugar production
- Specialised training for students
The EBRD is providing a working capital loan of US$ 20 million to LLC “Zerno-Agrotrade” and LLC “Tsukoragroprom” owned by Astarta Group (Astarta), which operates 250,000 hectares of arable land, eight sugar plants, a soybean processing factory and dairy farms.
Astarta, which has been the Bank’s client for over a decade and which is listed on the Warsaw Stock Exchange, is going to employ modern IT solutions necessary for the precision farming it is promoting in Ukraine. These modern agricultural technologies will help improve crop yields and reduce the use of mineral fertilisers by 15 per cent. Over the next three years Astarta is also planning to increase the area covered by precision farming.
In the context of the project, Astarta will also offer a high quality, comprehensive training programme to substantial high school graduates and students willing to work in the agribusiness sector in Ukraine. Skill gaps and inadequate professional education currently limit career opportunities in this sector. They also impede further development of domestic agricultural companies.
Legal due diligence costs for the project are covered by resources provided by the Japan-EBRD Cooperation Fund.
The EBRD is the largest international financial investor in Ukraine. To date, the Bank has made a cumulative commitment of almost €12.1 billion across some 400 projects since the start of its operations in the country in 1993.