Astarta to receive USD 25 mln loan from Dutch development fund

Ukrainian farmer and leading sugar producer Astarta
(AST PW) will receive a USD 25 mln loan from Dutch development fund FMO, the
company announced in a July 19 release. The funds are going to be used for the
modernization of the company’s sugar plants and the construction of a
wastewater treatment plant. The loan is the third facility provided by FMO
since 2008, the company reported.

Alexander Paraschiy: With investment into sugar production, Astarta will further secure its
position as one of the most cost-efficient producers on the domestic sugar
market. Investing in the environment will enhance the company’s image for
corporate responsibility, paving the way for further cheap international
financing.

Meanwhile, Astarta remains one of the least
leveraged companies in the Ukrainian investment universe, with end-1Q17 debt of
EUR 115 mln and a net debt-to-LTM EBITDA ratio of 0.5x. All this allows us to
maintain a positive view on Astarta stock.