Oschad refinances NIBULON's investment project for more than USD 20 million

Oschadbank and NIBULON have agreed on a series of new loan agreements to replenish working capital, which will refinance the company's investments totaling $20.3 million.

On September 17, the parties signed the first part of this loan program in the amount of $13 million.

The resumption of financing marked a new stage in NIBULON's development after heavy losses and a difficult return to stability, including through restructuring. Now the company is able to gain momentum and develop the ecosystem of sustainable food safety.

NIBULON notes that the support of the real sector of the economy by state-owned banks is evidence of the government's consistent adaptation of its policy to the conditions of a full-scale war and its real focus on helping businesses.

“We see changes. We see a targeted state policy of supporting domestic business in action. This is a direct recognition of the critical role of strategic enterprises for the further development of Ukraine and a guarantee of our successful future. We are grateful to the government. We are grateful to the NBU for implementing the lending development strategy and to state-owned banks, especially Oschad, for their support and synchronized movement towards a common goal,” said Andrii Vadatursky, CEO of NIBULON.

NIBULON will use the proceeds to restore working capital after investing in the construction of a new transshipment terminal on the Danube. The Bessarabian branch began operations in 2022 and became the main route for exporting agricultural products, which was crucial in the context of the aggressor's blockade of Ukrainian seaports in previous periods. The replenishment of working capital, in particular, guarantees NIBULON's ability to fully support the procurement campaign for the 2024/25 season and support Ukrainian farmers in times of war.

“NIBULON has been a long-standing and reliable partner for us for over 6 years. It is one of the pillars of the country's food potential, including exports. Today, the company's total loan portfolio in Oschad is almost UAH 2 billion. Given that Oschadbank has a high level of liquidity, we are ready to continue financial support to NIBULON in all its initiatives to restore its leadership positions in the global markets lost due to the full-scale war,” said Yurii Katsion, Deputy Chairman of the Board of Oschadbank in charge of corporate business, during the signing of the agreement.

The Ukrainian agricultural market has suffered significant losses due to the full-scale war. For the third year in a row, Oschad continues to implement its wartime strategy, primarily supporting its partners, leading companies in the industry that ensures the country's food security, as well as representatives of other strategic sectors of the economy.

Vitalina Marchenko, Head of NIBULON's Banking Department, in turn, emphasized that the company is now able to operate thanks to the strong support of Ukrainian banks, in particular.

“We are grateful to Oschadbank for its systematic and consistent support of us, representatives of companies in the sector that ensures the country's food security. At the very beginning of the full-scale war, Oschadbank provided NIBULON with additional funding for the 2022/2023 sowing campaign to prevent a food crisis that the aggressor was trying to create. In 2023, Oschadbank was one of the first to restructure NIBULON's pre-war loan to support the company, which suffered losses due to the destruction of infrastructure during the hostilities, the blocking of sea routes from the port of Mykolaiv, and the forced reorientation to other logistics routes. And now we have new funding, which we will use for a procurement campaign to support small and medium-sized agricultural producers,” said Vitalina Marchenko.