Kernel extends USD 225 mln trade finance agreement

Kernel Group (KER PW) reported on Friday that it has extended an agreement with an undisclosed European bank on a USD 225 mln trade finance agreement, Interfax said. The company is planning to use the funds to purchase, transport and processes sunflower seeds. Kernel indicated that of the total amount, USD 170 mln will be available to the company this year. Andriy Gostik: Kernel can afford to take up more leverage to finance its working capital needs. As of the end of June 2009, the company’s net debt stood at USD 165.3 mln, and net debt to EBITDA in 2009 was only 0.88.