Agroholding Agrotrade received UAH 120 million in financing from Raiffeisen Bank as part of the European Bank for Reconstruction and Development (EBRD) risk-sharing program, the agroholding’s press service reported on Facebook.
It is noted that these funds will be used to cover seasonal needs: payment for agricultural services, purchase of fertilizers and plant protection products, as well as preparation for a new production cycle.
In addition, the company will attract an EBRD grant under the Human Capital Investment Incentive Program. It will be used to improve working conditions for employees and will be financed by the Kingdom of the Netherlands through the EBRD’s Special Crisis Response Fund.
“This result is the culmination of a year and a half of work with the EBRD. The negotiations were not easy, as our assets are located in the northeastern regions of Ukraine, which are considered high-risk. But we have proven that we are able to work effectively in any conditions, maintaining transparency, discipline, and responsibility to our partners,” said Antin Zhdanov, Deputy CEO for Economics and Finance at Agrotrade Group, whose words are quoted in the press release.
“Our cooperation with the EBRD under the risk-sharing program makes credit financing more accessible for agricultural companies, even in frontline regions. This has a positive impact on the recovery of the economy and the agricultural sector in particular,” said Larisa Bondareva, Deputy Chair of the Board of Raiffeisen Bank.
Analyzing the advantages of the project, the agricultural holding explained that Agrotrade gained financial flexibility and was able to purchase resources for production cycles on time, Raiffeisen Bank received guarantees for part of its loan portfolio, and the EBRD implemented its strategy of supporting business in regions affected by the war.
The Agrotrade Group of Companies is a vertically integrated holding company covering the entire agro-industrial cycle (production, processing, storage, and trade in agricultural products). It cultivates over 70,000 hectares of land in the Chernihiv, Sumy, Poltava, and Kharkiv regions. Its main crops are sunflower, corn, winter wheat, soybeans, and rapeseed. It has its own network of elevators with a one-time storage capacity of 570,000 tons.
The group also produces hybrid seeds for corn, sunflower, barley, and winter wheat. In 2014, a seed plant with a capacity of 20,000 tons of seeds per year was built on the basis of the Kolos seed farm (Kharkiv region). In 2018, Agrotrade launched its own brand, Agroseeds.
The founder of Agrotrade is Vsevolod Kozhemyako.
