The $130m loan from EBRD will be used by Sodrugestvo to purchase hoppers, build a biomass boiler house and for its working capital needs
The European Bank for Reconstruction and Development (EBRD) has agreed to provide a loan of $130m to Sodrugestvo Group, an agri-industrial company.
The loan will be used by Sodrugestvo across various levels including strengthening cooperation with local farmers, sourcing, transportation, processing and distribution of animal feed products.
EBRD’s loan to Sodrugestvo will include A-loan of up to $85m from the bank’s own account and a B-loan of up to $45m, which could be syndicated to commercial banks.
The loan will include $25m being provided to the company’s Sodrugestvo Trans-Agro, a private owner of grain-hopper railcars in Belarus, to purchase 216 more hoppers.
The new hoppers will decrease the company’s reliance on cargo services offered by state-owned railway companies and could help in strengthening its market position.
A loan of $55m will be provided to Belagroterminal, the operator of multi seeds crushing plant, to construct a biomass boiler house at its manufacturing facility in Smorgon, north-western Belarus.
The boiler house construction will help Sodrugestvo reduce its annual greenhouse gas emissions by up to 41,000 tonnes. The remaining $50m will be used to support the working capital needs of Belagroterminal.
Under the development programme supported by the EBRD, Sodrugestvo also aims to establish a close relationship with rapeseed and soybean farmers in Belarus and neighbouring region. It claims to provide guaranteed off-take arrangements to stimulate primary agriculture while promoting cross-border trade.
EBRD provided $90m loan in January to refinance its seed-crushing plants in Turkey
In January this year, the company had secured $90m long-term financing from EBRD for its Turkish subsidiaries Sodrugestvo Turkey Tarım Taşımacılık İthalat İhracat A.Ş., Yakamoz Yag Sanayi ve Ticaret Anonim Sirketi and Intergrain.
The loans will be used by the company to refinance its multi-seed crushing plants in Izmir and provide working capital and Capex financing to boost its regional operations.
Established in 1994, Sodrugestvo owns and operates the largest soybean processing complex in Europe and is one of the top soybean processors in the world.
The company also owns and operates production and port assets in Belarus, Brazil, Paraguay, Russia, and Turkey and exports manufactured and traded products to over 60 countries.