OREANDA-NEWS. August 25, 2011. Kernel is pleased to announce it has entered into a new USD 500 million credit agreement with a syndicate of banks led by ING Bank N.V, UniCredit Bank AG, and Deutsche Bank AG. The new facility will be drawn to finance the Company’s sunflower seed purchases, storage and processing into sunflower oil and meal to be sold on the domestic market or exported. The credit agreement shall come into force from the date of registration of the agreement with the National Bank of Ukraine, expected to be received by end of August 2011. Documentation in respect of the security structure of the loan is expected to be signed by the Parties by end of August 2011.

Anastasia Usachova, Kernel CFO, stated: “This new USD 500 million working capital facility is a milestone in our credit history. The new credit facility comes not only as an enlarged facility in replacement of the existing USD 360 million working capital loan extended to finance our crushing activity over the previous year, but, maybe more importantly, it provides significantly more financing flexibility to Kernel thanks to a dual tranche structure, with a USD 278 million long-term tranche available to the Company until 31 July 2014, and a USD 222 million short-term tranche made available until 31 July 2012 and renewable subject to the lenders approval. While the increase in the amount of the credit facility clearly indicates our crushing activity has reached a significant size and is a testimony to the close and stable relationship we have built over the years with our banks, the new USD 278 million long-term tranche will also greatly improve the financing flexibility available to the Group and support the increased complexity of our operations.”