Standard Bank, ING and Raiffeisen Bank Aval Arrange Loan for Grain Trading Company
Standard Bank, ING Wholesale Banking and Raiffeisen Bank Aval (mandated lead arrangers), Unicredito Ukraine (lead arranger) and Erste Bank, London branch (participant) have completed a US$100m three-year structured pre-export facility in favor of Grain Trading Company (GTC), one of Ukraine’s largest producers of crude sunflower oil. The facility is split into two US$50m facilities, the first for the refinancing of GTC’s existing bank debt and new capital expenditures, with a three-year tenor and the second for the financing of the annual working capital needs. This transaction sets a new benchmark for international financing of the primary agricultural processing sector in Ukraine, because of its longer than usual tenor and its security package which partially relies on fixed assets. GTC has continued to improve and expand its position in the Ukrainian agribusiness sector and this transaction recognises this, through the provision of long term financing to a company operating in a sector that is highly dependent on the annual cycles of the production of agricultural commodities in Ukraine and worldwide.