Kernel, one of Ukraine’s largest agro-industrial groups, a leading grain exporter from Ukraine, and a global leader in the production and export of sunflower oil, has received Ukraine’s first commodity agricultural note, the agro-holding’s press service reported on its website.
According to the report, the document was registered in the Register of Agricultural Notes with the support of PJSC National Depository of Ukraine (NDU), the official administrator of the system.
The commodity agricultural note was deposited with the Central Securities Depository, which ensures its legal status and high liquidity. Thanks to this, the instrument can be used as a reliable collateral in financial transactions and as an alternative to traditional agricultural financing mechanisms, the agricultural holding explained.
“We see the future in the digitization and standardization of processes. The use of agricultural notes is not just a tool, but a foundation for transparent and effective interaction between participants in the agricultural market. We are confident that this decision will allow us to flexibly and quickly support our partners, especially in today’s difficult market conditions,” emphasized Alexander Golovin, Commercial Director for Ukraine at Kernel.
The agricultural note was issued with the support of the IFC project “Developing Ukraine’s Agricultural Sector Access to Capital Markets,” which is being implemented in partnership with the Swiss Confederation. The initiative aims to expand access to finance for agricultural producers by strengthening the agricultural receipt instrument and preparing agricultural notes as a fully-fledged asset class for securitization.
“We sincerely believe that agricultural notes will become one of the key lending instruments for the agricultural sector, especially for covering working capital needs and attracting financing from capital markets,” said IFC Project Manager Kirill Mukhomedzyanov.
“An instrument such as a commodity agricultural note provides high legal transparency and reduces the cost of financing for agricultural producers, which is particularly valuable for small and medium-sized farmers with limited access to investment. Accordingly, in the long term, the use of notes will help boost investor and bank confidence in the sector and allow for free market circulation, opening up new sources of capital,” emphasized Kernel’s head of agribusiness finance, Mykhailo Golubakha.
The agricultural holding emphasized that the launch of agricultural notes is a manifestation of the company’s strategic course towards the digitalization of business processes.
Before the war, Kernel was the world’s leading producer of sunflower oil (about 7% of global production) and its exporter (about 12%). It is one of the largest producers and sellers of bottled oil in Ukraine. In addition, it is engaged in the cultivation and sale of agricultural products.
