State-owned Oschadbank has increased the credit limit for Druzhba-Nova, the largest cluster of Kernel’s agricultural holding, by almost four times – from UAH 340 million to UAH 1.253 billion, the bank’s press service reports.
According to the report, the funds are provided to replenish the working capital of the agricultural producer. Thanks to the funds raised, the company will be able to ensure an effective harvesting and sowing campaign this year, which will lead to an increase in foreign exchange earnings from Ukrainian exports.
“Supporting the agricultural sector continues to be a priority for us during the war, as it is not only food security, but also one of the main drivers of our economy and foreign exchange earnings in Ukraine,” said Yuriy Katsiyon, Deputy Chairman of the Board of Oschadbank in charge of corporate business.
The bank clarified that the loan portfolio of the Kernel group of companies in Oschadbank is already over UAH 2.2 billion.
Druzhba-Nova is one of the largest land clusters of Kernel, which cultivates more than 110 thousand hectares in Sumy, Chernihiv and Poltava regions. It specializes in crop and livestock production.
Prior to the war, Kernel was the world’s largest producer of sunflower oil (approximately 7% of global production) and a major exporter (approximately 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.
Kernel’s net profit for FY2023 amounted to $299 million, while the company ended the previous year with a net loss of $41 million. The agricultural holding’s revenue for FY2023 decreased by 35% to $3.455 billion, but EBITDA increased 2.5 times to $544 million.
In the first half of FY2024, Kernel’s net profit fell 3.6 times compared to the first half of FY2023 to $102 million, and EBITDA halved to $223 million on a 16% decline in revenue to $1.59 billion.
According to the National Bank of Ukraine (NBU), as of May 1, 2024, Oschadbank ranked 2nd (UAH 403.61 billion) in terms of total assets among 63 banks in the country. Last year, the financial institution’s net profit amounted to UAH 5.98 billion.
