The loan will be used by Sodrugestvo to strengthen its processes in Turkey and to increase suppliers in Eastern Europe
The European Bank for Reconstruction and Development (EBRD) has agreed to provide $90m in financing to agricultural commodity processor Sodrugestvo Group.
Established in 1994, Sodrugestvo is claimed to be one of the largest soybean processing complex in Europe and is ranked among the top 20 soybean processors in the world.
Headquartered in Luxembourg, Sodrugestvo has more than 30 subsidiaries across 20 countries including Belarus, Brazil, Paraguay, Poland, Russia, Serbia, Turkey and Ukraine. The company manufactures proteins and oils and distributes agricultural commodities across the world.
The financing is expected to boost the agricultural sectors in Turkey and eastern Europe with the financing.
EBRD is providing three loans to Turkish and European subsidiaries including Sodrugestvo Turkey Tarım Taşımacılık İthalat İhracat, Yakamoz Yag Sanayi ve Ticaret Anonim Sirketi and Intergrain to strengthen their operations.
Sodrugestvo aims to become a regional soybean processing leader in Turkey
The company plans to use $80m of the loans for improving the efficiency of a multi-seed crushing plant in Izmir and to provide working capital and capex financing to support its regional operations while improving its efficiency.
The company also plans to bring the plant’s efficiency to its group standards and to enhance customer services in Turkey and the Middle East and Africa (MENA). It is also working on transforming its Turkish facilities into a regional hub and a leading soybean processor in the country and across the Mediterranean region.
The remaining $10m of the funds will be used by the Sodrugestvo to increase the number of agricultural suppliers in Eastern Europe.
Sodrugestvo CEO Aleksandr Lutsenko said: “Sodrugestvo Group constantly works on broadening its funding sources to back its operations and expansion plans and we welcome EBRD as a strategic partner helping us in our regional growth initiatives.
“Our company pays special attention to sustainable development and environmental protection matters in its business. EBRD support is an important footprint in this area.”
Sodrugestvo Group chief financial officer Sergey Churkin said: “EBRD financing fits into our funding strategy with particular focus on diversification, extension of debt maturities and control over borrowing costs.
“Working with EBRD brings more visibility and recognition on international markets and confirms Sodrugestvo Group as a reliable and high-quality borrower.”