The development objective of this project is to provide the necessary liquidity to finance the current farming and processing campaign until November 2020 and beyond.
Opportunity Background
Project Details:
The provision of a senior secured revolving loan of up to €10 million to Farm Enterprise “Organic Systems”. The Loan will be used to finance the increased working capital needs of Agrofusion Group. This project was approved in the context of the Bank’s response to the COVID-19 pandemic.
Opportunity Structure
Project Objectives
The operation will provide necessary liquidity to finance the current farming and processing campaign until November 2020 and beyond. Securing sufficient working capital financing will be crucial for Agrofusion Group to achieve sustainable production volume under COVID-19 environment. Therefore, it will help the Group to preserve its investments, which were part of the original project between the Bank and Agrofusion approved in 2017.
Transition Impact
ETI score: 60
The project will help preserve Agrofusion’s ability to meet the transition impact that is expected to be achieved as part of the original engagement with the company approved in 2017. The original transition impact objectives are as follows:
- Improving standards in terms of resource efficiency (Best Available Techniques compliance and water savings);
- Demonstration of new replicable activities through the promotion of organic farming in Ukraine;
- Skill transfer thanks to trainings offered to young people about modern farming techniques and technologies;
- The recruitment for permanent jobs in rural areas.
The new engagement is associated with the PTI score of 60 of the original transaction.
Client Information
ORGANIC SYSTEMS FE
Farm Enterprise “Organic Systems”, incorporated in Ukraine, is one of the main operating companies of Agrofusion Group.
EBRD Finance Summary
EUR 10,000,000.00
Total Project Cost
EUR 10,000,000.00
Opportunity Scope
The project has been approved. It can be expected that services, supplies, and/or works for finance and economic development may be procured in the duration of this project.
Timeline
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Announced on28 Jul 2020
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Funding approved on28 Jul 2020
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Start date28 Jul 2020
Contacts
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Olga Zhukova
Agrofusion Group- [email protected]
- +38 0512 58 79 01
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EBRD Procurement
European Bank for Reconstruction and Development (EBRD)- [email protected]
- +44 20 7338 6794
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Business Enquiries
European Bank for Reconstruction and Development (EBRD)- [email protected]
- +44 20 7338 7168
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