Project detail - NIBULON AGRICULTURAL LIMITED LIABILITY COMPANY

NIBULON AGRICULTURAL LIMITED LIABILITY COMPANY

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Who is our client

NIBULON AGRICULTURAL ENTERPRISE LLC Nibulon is leading Ukrainian integrated grain/oilseeds exporter and producer, operating one of the largest logistics networks of grain storage and transportation in Ukraine.

Funding objective

The Project will support Nibulon's strategy aimed mainly at the expansion and optimisation of its river grain logistics facilities in order to increase grain trading volumes reducing the share of road and rail transportation, which will lead to the improvement of profitability, efficiency, as well as to the reduction of environmental footprint.

Why we fund this project

The Project is expected to have a significant transition impact under the 'Integrated' quality as it will enable Nibulon to increase its export capacity through improved logistics and infrastructure. The Project will also promote the development of low carbon transportation mode prioritising sustainable pattern of grain transportation routes in the country (via the Dnieper and South Buh rivers) thus contributing to SDGs number 2(zero hunger), 8(decent work and economic growth) and 9 (industry, innovation and infrastructure).

Environmental and social rationale

The proposed project is to invest in environmentally sound, energy efficient grain terminals supporting the local grain producer's ability to trade their products efficiently. The terminals are developed in compliance with national regulatory requirements and international standards and implemented by a sponsor committed to good environmental and social management and with a proven record of openness and transparency. The project will follow international labor standards during construction and operational phases, and will only have minimal and well defined emissions and discharges which will be in line with local regulations and the World Bank Group (WBG) environmental health and safety (EHS) guidelines. With no indication of impacts related to Performance Standards 5 through 8 and already addressed environmental and social issues under Performance Standards 1 through 4. This is a Category B project in FMO's internal policies. This transaction will also be classified as green.

More investments

Date Total FMO financing
4/12/2018 USD 3.00 MLN
6/30/2017 USD 25.00 MLN
Region
Europe & Central Asia
Country
Ukraine
Sector
Agribusiness, Food & Water
Signing date
4/12/2018
Total FMO financing
USD 7.00 MLN
Fund
FMO
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk Environmental & Social Category
(A, B+, B or C)
B