IFC approves USD 35 mln loan to Astarta

The board of directors of the International Finance Corporation (IFC) approved the disbursement of USD 35 mln in working capital loan to Ukraine’s food and farming holding Astarta (AST PW), Interfax reported on Sept. 23, citing an IFC spokesman. The deal was approved on Sept. 17 and is currently being prepared for signing, the IFC said. Astarta earlier declared it would use this loan to support its soy processing business, namely the purchase of soybeans from farmers during harvest.

Alexander Paraschiy: The approval of the IFC loan tranche largely confirms the solid financial position of Astarta, which is an important indicator in Ukraine’s current economic malaise. It would be a bit late to start soybean purchases when the loan arrives, in our view, given that the soybean harvesting season in Ukraine is coming to its end. Therefore, we believe Astarta used other financial resources to start the process, while the IFC loan will serve to support it later this fall.