January 20, 2012

European bank to fund Viterra for agricultural purchase in Ukraine

The European Bank for Reconstruction and Development (EBRD) seeks to apportion a US$30-million loan to Viterra Ukraine LLC, the Ukrainian subsidiary of major Canadian agro-company, Viterra inc.

The funds are for replenishing the subsidiary's circulating capital in order to purchase agricultural production in Ukraine.

The press secretary for the bank's representative office in Ukraine, Anton Usov, told Interfax that EBRD's board of directors approved this project on January 17.

He said that the necessary documents for the loan would be signed in the near future.

EBRD said that the traditional markets for Viterra have been North America and Australia whereas the company is a relatively new player on the Eastern European market.

Viterra's operations are concentrated in three key areas: agricultural supply (seeds, fertiliser, equipment, and crop protection materials), grain trade and storage (with a 45% stake on Canada' storage market) and processing (oats, rapeseed, and malting).

The Canadian company acquired ABB Grain Ltd. in September 2009, which, along with France's Groupe Soufflet, formed the enterprise New World Grain Ukraine for operations on the Ukrainian grain market.

Viterra said in October 2010 that it had opened a trade office in Kyiv in order to boost its opportunities in the Black Sea region for key commodities such as wheat, barley, and rapeseed.