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Sodrugestvo Group closes US$90 million EBRD financing to support expansion

The agricultural sectors of Turkey and eastern Europe are receiving a boost thanks to financing worth US$90 million from the European Bank for Reconstruction and Development (EBRD) for the agricultural commodity processor and trader Luxembourg-headed Sodrugestvo Group S.A.

Agro-commodity major Sodrugestvo Group has received US$90 million in financing from the European Bank for Reconstruction and Development (EBRD). Amongst other things, the funds will be used to refinance the acquisition of the Yakamoz Yag Sanayi ve Ticaret Anonim Sirketi oilseed crushing mill in Izmir, Turkey (photo courtesy Sodrugestvo Group).

Founded in 1994, Sodrugestvo Group owns the largest soybean processing complex in Europe and ranks among the top 20 soybean processors in the world. Vertically integrated with four business units: production of proteins and oils, trading of agricultural commodities, specialized infrastructure (including river and deep-water seaports) and logistics (including railcars and storage facilities), the company has more than 30 subsidiaries located in some 20 countries, including in Belarus, Brazil, Paraguay, Poland, Russia, Serbia, Turkey, and Ukraine.

The EBRD is providing three loans to Sodrugestvo Turkey Tarım Taşımacılık İthalat İhracat A.Ş., Yakamoz Yag Sanayi ve Ticaret Anonim Sirketi and Intergrain S.A, all subsidiaries of Sodrugestvo to enhance their operations. The group manufactures proteins and oils and distributes agricultural commodities globally. Of the EBRD’s loan, US$25 million is expected to be syndicated to foreign lenders.

Finance efficiency improvements

In Turkey, the loans totaling US$80 million EBRD aim at refinancing the acquisition by Sodrugestvo in December 2018 of a multi-oilseed crushing plant in Izmir and providing working capital and CAPEX financing to boost the Group regional operations, improve the efficiency by bringing the plant to the group standards and enhance customers services in Turkey and the Middle East North Africa (MENA) region.

Sodrugestvo plans to improve the efficiency of its Turkish subsidiary by bringing it up to company standards, increasing profitability and sustainability. The company is working on the transformation of its Turkish facilities into a regional hub and a leading soybean processor in the country and the Mediterranean region.

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, commented Aleksandr Lutsenko, CEO of Sodrugestvo.

In addition, with US$10 million of EBRD funds, Sodrugestvo aims to increase the number of its agricultural suppliers in eastern Europe.

EBRD financing fits into our funding strategy with a particular focus on diversification, the 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, said Sergey Churkin, CFO, Sodrugestvo Group.

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