OREANDA-NEWS. December 11, 2012. The large scale patriotic investment project to revive the Dnipro and the Southern Bug Rivers as main transport waterways of Ukraine, implemented by the leader of the Ukrainian agrarian market, agricultural company NIBULON, was supported by the European Bank for Reconstruction and Development. On Monday NIBULON’s General Director, Hero of Ukraine Oleksiy Vadaturskyy and EBRD Country Director for Ukraine Andrй Kььsvek signed a loan agreement for allocation of a syndicated loan in the amount of USD 125 mln to NIBULON. It will allow NIBULON to consolidate its balance sheet and to streamline the existing loans.

NIBULON will receive USD 30 mln from the EBRD and up to USD 100 mln will be allocated by the first class banks, namely UniCredit Bank, BNP Paribas, Societe Generale, ING Bank, Hambros Bank. The loan is given for 3 years.

EBRD Country Director for Ukraine Andrй Kььsvek mentioned the EBRD is glad to continue cooperation with the company as NIBULON is one of a few private companies that can do business on such a high level.

“This is one of the largest syndicated transactions in the agribusiness of Ukraine over the past few years. It demonstrates confidence of international financiers both in the country and in the agricultural sector. We are pleased to cooperate with NIBULON strategic initiatives of which are important for Ukraine and the region”, stressed A.Kuusvek.

He also added the EBRD is familiar with NIBULON’s large scale plans to revive navigation along main rivers of Ukraine and also to develop the grain market infrastructure and the EBRD is ready to support them. “We know this is the leading company that creates its own vertically integrated approach to agribusiness making a chain from grain cultivation to its transportation and export. And we are ready to support this direction of NIBULON’s development”, mentioned he.

The EBRD noted NIBULON is the only Ukrainian company participating in the UN’s World Food Programme thus addressing global food security issues. “Cooperation with the EBRD will boost NIBULON’s efficiency and competitiveness, and will also enhance its reputation to secure its status as a major international agribusiness player”.

Speaking about the importance of loan for the company and for the agrarian market in whole, A. Kььsvek added, “Consolidation of financial resources is the main factor for NIBULON’s stability. Next year will be difficult for the financial sector of Europe and as a result – for Ukraine. Consequently, it is very important to consolidate balance sheet and to secure stability.”

According to NIBULON’s General Director Oleksiy Vadaturskyy, signing of such an agreement is a very solemn event for NIBULON that demonstrates a high level of confidence of the world’s leading financial institutions in successful agribusiness developed by the company.

“We are grateful to the Loan Committee and to the Board of Directors for the work we have done together to reach our agreement. This is our second loan agreement with the EBRD. Those USD 50 mln, allocated to us in 2010, were directed to the large scale investment program to revive the Dnipro and the Southern Bug Rivers as main transport waterways of the country. Due to the EBRD participation we became leaders not only in the agricultural sector but also in shipbuilding, construction of hydrotechnical facilities, logistics, in implementation of innovative environmental protection technologies”, noted Oleksiy Vadaturskyy.

According to him, due to the EBRD previous loan the company managed to increase its investment potential in 8 times having invested above USD 400 mln in the network of its own elevators and in the project to revive the Dnipro and the Southern Bug Rivers as main Ukrainian transport waterways. “Due to the funds allocated by the EBRD, we make everything in order to demonstrate that Ukraine is a maritime country and not a country at the seaside. Several years we are the Ukrainian leaders in construction of vessels, hydrotechnical facilities, elevators, in carrying out dredging works”, said Oleksiy Vadaturskyy.

He also added that thanks to the implementation of NIBULON’s large-scale investment project and bringing of grain transportation amount to 3 mln tons per year, there will be reduced an environmental load on the environment and on the transport infrastructure considerably in the near future. “We will be able to remove tens of thousands of cars, to relieve hundreds of grain-carriages”, mentioned Oleksiy Vadaturskyy.

According to him, today the company uses Ukrzaliznytsya rail car fleet more effectively than other agricultural companies having reduced carriage turnover to 3 days while an ordinary turnover schedule comprises from 8 to 10 days.

“We show an example of the most effective use of rail transport in the market. Due to the modern transshipment terminals and elevators for shipment and loading of grain and other cargoes, we can load a train with 65 carriages in less than 20 hours, we can deliver it to the export terminal within 12 hours, it will take us another 20 hours to unload it and in 12 hours it can be returned to every part of Ukraine”, noted O.Vadaturskyy.

He also added the presence of transparent game rules in the traffic market does not eliminate the possibility to implement the project on construction of railcars using the company’s own resources.