Project detail - TRANS-OIL INTERNATIONAL SA

TRANS-OIL INTERNATIONAL SA

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Who is our client

Trans-Oil Group is a leading vertically integrated farming, oilseed crushing, trading and transportation logistic provider with operations in Moldova and Ukraine. The company owns a unique distribution and export network in Moldova with extension to the Black Sea region and upstream to the Danube basin. More than 80% of the sales of the Company are exported via large international traders to the EU, Turkey and Asia.

Funding objective

FMO intends to participate for up-to USD 20 million in a 1-year working capital facility with other financial institutions. The funds will be used to finance Trans-Oil Group’s purchases of agricultural commodities from third parties until their export from Moldova.

Why we fund this project

FMO intends to support farming in Moldova in general and a leading agribusiness player in particular, by funding Trans-Oil Group’s seasonal working capital needs and thereby, help Moldova earn hard currency. FMO will contribute to SDG 1 (no poverty), SDG 2 (zero hunger) and SDG 8 (decent work and economic growth).

Environmental and social rationale

E&S risk is categorized as “B” (medium to low). FMO’s environmental and social due diligence indicates that the intended investment will have an impact, which must be managed in a manner consistent with the following Performance Standards: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts; PS 2 – Labor and working conditions; PS 3 – Resource Efficiency and Pollution Prevention; PS 4 – Community Health, Safety and Security. IFC Performance Standards 5 - 8 are not relevant as the project takes place at the existing company site. During the project implementation, FMO will periodically review the project’s ongoing compliance with the Performance Standards 1- 4.

More investments

Date Total FMO financing
4/30/2020 USD 10.00 MLN
3/26/2019 USD 5.00 MLN
7/12/2018 USD 25.00 MLN
4/10/2018 USD 5.00 MLN
7/12/2017 USD 20.00 MLN
Region
Europe & Central Asia
Country
Moldova, Republic of
Sector
Agribusiness, Food & Water
Signing date
9/24/2019
Total FMO financing
USD 15.00 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