Project detail - NIBULON AGRICULTURAL LIMITED LIABIL

NIBULON AGRICULTURAL LIMITED LIABIL

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Who is our client

NIBULON LLC 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

This season, the harvest starts several weeks earlier than usual. The USD 20mln loan will be used to support the immediate working capital needs of the Company. FMO funding will strengthen Nibulon's ability to buy harvest in Ukraine during the uncertain times of COVID-19.

Why we fund this project

The funds are a part of the FMO’s COVID-19 response to support our clients in uncertain times to ensure Nibulon’s capacity to source and export grains from Ukraine to deliver to countries where it is needed all over the world. In this way, FMO will contribute to tackling zero hunger, and contribute to decent work and economic growth.

Environmental and social rationale

The working capital financing supports Nibulon’s ability to continuously run operations in purchase and trade of grains and oil seeds. The grain storage and transportation used by the company 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 company’s environmental and social management system follows requirements of the World Bank Group (WBG) environmental health and safety (EHS) guidelines. This is a Category B project in FMO's internal policies. The following IFC Performance Standards apply: 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. As the nature of this project does not involve direct land acquisition or direct use of natural resources but is instead facilitating optimization of existing facilities, the following performance standards do not apply to this project: - PS 6 - Biodiversity Conservation and Sustainable Management of Living Natural Resources - PS5 - Land Acquisition and Involuntary Settlement - PS7 - Indigenous - PS8 - Cultural Heritage. FMO will periodically review the project’s ongoing compliance with the Performance Standards.

More investments

Date Total FMO financing
4/12/2018 USD 7.00 MLN
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
6/19/2020
Total FMO financing
USD 20.00 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