Kernel renews USD 300 mln pre-export loan

Ukraine’s largest sunflower oil producer Kernel (KER PW) reported on Aug. 31 that it has renewed a USD 300 mln pre-export credit facility with a syndicate of European banks. The loan will be used by the company to fund working capital needs, including purchasing sun seed for Kernel’s crushing business.

Roman Topolyuk: Kernel renewed its loan, as it usually does in August-September, ahead of the arrival of the new harvest of sunflower to the market. As a result, the company now has the ability to purchase sun seed at low prices, thus positively impacting its crushing margin throughout the year. We reiterate our positive view on Kernel’s stock.