EBRD lends USD 50 million to Noble Group for development of business in Ukraine
Monday, 19 Oct 2009
It is reported that the European Bank for Reconstruction and Development has lent Noble Resources Ukraine LLC a wholly owned subsidiary of Noble Group Limited leading global supply chain manager in agricultural and other commodities.
The loan agreement was signed by the sides on October 13th 2009.
According to the document, EBRD financing will be provided in the form of an annual revolving working capital loan with a maximum commitment of up to USD 50 million, which will be renewable for three years.
The facility will be used by Noble Resources Ukraine LLC for the production, storage, and export-trade of agricultural commodities in Ukraine. Other project objectives in which EBRD cooperation is envisaged include the construction or possible acquisition and upgrade of grain storage and primary processing facilities in Ukraine.\
Noble Resources Ukraine LLC will work with domestic silo operators on fostering improvements of their facilities and operations to bring them in line with the best international practice. At the same time Noble own silos, operated to the best international standards, will encourage competition in the sector.
As reported, the EBRD earlier planned is to issue a USD 24 million long term credit to one of the largest raw materials traders in the world Noble Group Limited for capital investment in the Ukrainian agricultural sector and USD 60 million to replenish of its circulating capital for operations in Ukraine and Turkey.
According to the EBRD, the regional strategy of Noble Group foresees planting, storage, processing and sales of farm products in Ukraine. The group expects to quickly increase its share of the market thanks to closer work with local companies and active use of warehouse receipts.
