Rabobank is proud to act as the co-lead arranger of this landmark transaction, aiding KERNEL in expanding its capacity to enhance global food security.
For the first time since the start of the full-scale invasion, Kernel has secured financing from international lenders — a syndicate of European banks. The USD 150 million credit line has a maturity date of August 1, 2025, with an option for extension. The funds will be used to support operations to increase the export of Ukrainian agricultural products, particularly sunflower oil. 💵 “Despite the numerous challenges Ukraine faces, as well as the complex political and economic situation, we continue to meet our financial obligations. This is not only about responsibility today but also about building trust in us, which means new opportunities tomorrow. Our strategy is already yielding results: Kernel has fully and timely redeemed its USD 300 million 2024 bonds. Fitch Ratings upgraded our long-term credit rating from ‘CC’ to ‘CCC-’. Banks have also recognized our stability during the war, which enabled us to secure new financing even in these unprecedented times,” commented Sergyi Volkov, CFO of Kernel. Among the banks involved in the syndicated credit line for Kernel are Dutch commercial banks ING and Coöperatieve Rabobank U.A., as well as the international financial institution, Black Sea Trade & Development Bank (BSTDB). Zlata Griukalo, Head of Corporate Finance, noted: “The negotiation process was challenging, as we were focused on finding the most effective financial solution. We are grateful to our partners for their understanding and willingness to cooperate. This allowed us to achieve this important result for our company.” “The significant aspect of this agreement is the mechanism for new banks to join the syndicate. This opens up opportunities for further expanding our partnerships with other banks,” said Marina Sologub, Corporate Finance Manager. 🚢 The funds raised from foreign lenders will be used to finance Kernel’s working capital for purchasing sunflower seeds, rapeseed, and soybeans in Ukraine. The processed products, including vegetable oil and meal, will be exported to the international market. In doing so, Kernel is expanding its capacity to support global food security.