ASTARTA Holding N. V. Attracts USD 25mln Loan from FMO
OREANDA-NEWS On 06 November was announced, that ASTARTA Holding N. V. CEO Mr. Viktor Ivanchyk and FMO CEO Mr Nanno Kleiterp signed a USD 25 million term facility agreement provided to ASTARTA, Ukraineґs leading agricultural and sugar producer. The loan will enable ASTARTA to diversify its credit portfolio and to finance its agricultural and sugar production operations.
Secured by two major shareholders of ASTARTA Holding N.V. who agreed to pledge their shares in the Company, the facility will be applied towards the refinancing of the existing bridge finance of USD15,000,000 provided by ABN AMRO Bank N.V., as well as financing capital expenditures in the sugar and agricultural sectors.
Following its development strategy, ASTARTA has been actively developing its agricultural and sugar business this year. This includes, inter alia, launching sugar production at the two new sugar plants and active expansion of the land bank, accounting for over 155,000 hectares used in agricultural operations. The FMO facility will allow Agri-industrial holding ASTARTA to finance the increased sugar production in the current production season. This should result in the considerable rise in the sugar output and will make the Holding the largest sugar producer in Ukraine as early as this year.
Victor Ivanchyk, CEO of Astarta Holding N.V., said: "We are sure that this agreement marks the beginning of a long-term fruitful cooperation between ASTARTA and FMO. It has a great significance in the current situation of distressed financial markets in the world as another proof of ASTARTA's stability and strong growth profile, as well as unique prospects of the Ukrainian agricultural sector. This deal will allow us to successfully finish this year production campaign and to put a solid ground for the further business development, especially in the new regions of operation in the Western Ukraine."
Nanno Kleiterp, CEO of FMO, stated that the results shown by ASTARTA's management to date were impressive and that he was looking forward to building a productive cooperation with ASTARTA.
About FMO
The Netherlands Development Finance Company (FMO) is the international development bank of the Netherlands. FMO invests risk capital in companies and financial institutions in developing countries. With an investment portfolio of EUR3.4 billion, FMO is one of the largest bilateral development banks worldwide. The Dutch State holds 51% of its shares while the large Dutch banks retain 42%. The remaining 7% is held by employers' associations and trade unions and some 100 Dutch companies and individual investors. FMO's mission: to create flourishing enterprises, which can serve as engines of sustainable growth in their countries.
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