The European Bank for Reconstruction and Development (EBRD) has provided Olam International Ltd. (Singapore) with a $200 million loan to finance the company’s working capital needs in Ukraine, Turkey, Egypt, Georgia and Poland.
“The EBRD loan will finance purchases of agricultural commodities such as hazelnuts, dry dairy products, grain and onions in selected countries of operation. Local subsidiaries of the company will take on the processing, storage and distribution of these goods,” the bank said on its website.
“The European Union and the TaiwanBusiness-EBRD Technical Cooperation Fund will provide donor support for the development of new methodologies and processes for climate-related risk management and stress testing in Egypt and Turkey,” it says.
Olam International is a major food and agricultural products manufacturer headquartered in Singapore.
Olam International Ltd. 53.4% is owned by Temasek Holdings, 17.4% by Mitsubishi Corporation, 7% by Kewalram Chanrai Group and 6.3% by the Olam management.
Olam Ukraine LLC was founded in 2005 and is currently the leading supplier of cocoa beans and cocoa products to large local confectioners, as well as a major exporter of grain and milk powder products.
Ukraine will attract a loan from Cargill Financial Services International, Inc. in euros in the amount of up to EUR 250 million, the loans will bear interest at a rate of 5.95% per annum for contracts with maturity in three years and 6.85% for contracts with maturity in five years.
According to resolution No. 717 of the Cabinet of Ministers dated August 17, posted on the government portal, interest income will be paid on a quarterly basis.
The document notes that state external borrowings are carried out within the framework of the law on the national budget for 2020.
The European Bank for Reconstruction and Development (EBRD) could provide a senior sovereign-guaranteed loan of up to EUR 53 million for the acquisition and equipping of postal vans and for the development of modern automated sorting hubs in the cities of Kyiv, Lviv and Dnipro.
According to a report on the bank’s website, the project is pending approval of the bank’s board until September 30, 2020.
Tranche 1 of up to EUR 23 million is intended for the acquisition and equipping of postal vans to be deployed in rural areas across the country and Tranche 2 of up to EUR 30 million for the development of modern automated sorting hubs in the cities of Kyiv, Lviv and Dnipro and an associated network of regional sorting depots.
According to the EBRD, the total cost of the project is EUR 102 million, which includes EUR 53 million of EBRD loan, a EUR 30 million loan of the European Bank for Reconstruction and Development (EIB) and own funds of Ukrposhta in the amount of EUR 19 million.
Ukraine signed a memorandum with the European Union of understanding and a loan agreement between Ukraine, the National Bank of Ukraine (NBU) and the EU on the country’s receipt of macrofinancial assistance in the amount of EUR 1.2 billion.
On the Ukrainian side, the documents were signed by Finance Minister Serhiy Marchenko and NBU Governor Kyrylo Shevchenko.
The European Investment Bank (EIB), as part of a joint initiative with the European Commission – InnovFin Science, has agreed the issue of a loan of EUR 50 million for the UNIT.City innovative park.
According to a joint press release, the loan is provided as part of the EU’s Horizon 2020 research and innovation program and is managed by the EIB.
“Ukraine and more specifically the Kyiv urban area lack a proper ecosystem for R&D and IT companies at all stages of development, from start-ups to expanding high-tech companies. With its dedicated InnovFin Science support, the EIB is now helping Ukraine to bridge this gap. This will strengthen the competitiveness of the country and its capital city and enable it to take full advantage of its skilled workforce,” EIB Vice President Lilyana Pavlova stated.
“The EIB credit line provides up to 10 tranches of at least EUR5 million each. The funds are allocated for nine years with a very competitive annual interest rate for Ukraine. Money will be allocated for the construction of new campuses of the innovation park – B15, B16, B17, U1 – with a total area of 70,000 square meters. The total cost of the project (including components financed by the EIB) is estimated at EUR 110 million. Thus, about half of the estimated costs will be financed by the EIB,” the report on the bank’s website says.
“The project promoter and the EIB loan borrower is Unit Holdings LLC, a company established by UFuture Group. The project is expected to be completed by 2023 and it will generate up to 2,400 temporary jobs and increase permanent employment within the promoter’s business by 549 full time jobs. Indirectly, the project will support around 15,000 jobs in the tenant companies present at the UNIT.City innovation park,” according to the report.
The World Bank’s Board of Executive Directors today approved a $350 million First Economic Recovery Development Policy Loan (DPL) for Ukraine in support of reforms that are critical to economic recovery. According to the press service of the World Bank, the key reforms supported by the DPL include: strengthening land and credit markets by creating a transparent and efficient market for agricultural land and resolving non-performing loans in state owned banks; fostering de-monopolization and anti-corruption institutions including by restructuring the gas sector; bolstering the social safety net for the vulnerable elderly population to cushion the impact of the COVID-19 pandemic.
“The COVID-19 pandemic is resulting in a sharp economic downturn that is hurting the incomes of ordinary Ukrainians and small businesses, and straining the government’s budget. This development policy loan provides $350 million to support budget expenditures at a difficult time. The World Bank welcomes the Government’s commitment to these reforms to prepare the economy for recovery, including the significant steps taken to end the moratorium on agricultural land sales, and to bolster benefits for the vulnerable elderly population,” Arup Banerji, incoming World Bank Country Director for Belarus, Moldova, and Ukraine, said.
This DPL is the first of two planned operations, with the second DPL expected to support the additional important land reform legislation and further strengthen pension benefits for the elderly population.
The development policy loan is part of the World Bank’s stepped-up support to Ukraine to address the impacts of COVID-19 and complements the approval of additional financing of $135 million for the Serving People, Improving Health Project and $150 million for the Social Safety Nets Modernization Project.
Additional support to directly cushion the most vulnerable population from the impact of the pandemic is also under preparation.
Since Ukraine joined the World Bank in 1992, the Bank’s commitments to the country have totaled about $14 billion for more than 80 projects and programs.
