Kernel renews USD 350 mln loan facility
25 August 2015
Ukraine’s largest sunflower oil producer Kernel (KER PW) announced on Aug. 25 that it has renewed a USD 350 mln pre-export credit facility (PXF). The purpose of raising this one-year loan is to fund the working capital needs of the sunflower oil production business in Ukraine.
It’s the third extension of pre-export facilities in a row, after Kernel had secured USD 65 mln in June and USD 230 mln mid-August.
Roman Topolyuk: With this third facility in place, Kernel has finalized the renewal of its short-term credit lines (worth totally USD 645 mln), which are necessary to conduct sunflower oil production, crop farming and other regular operations for the next season. Thus, the company has ample liquidity to conduct uninterrupted business activity in an environment in which smaller competitors have limited access to working capital financing. This availability of short-term financing supports our bullish view on Kernel stock.
