IFC lends USD 30 mln to Astarta for modernization

International Finance Corporation (IFC) announced on
May 23 that it is providing a USD 30 mln loan to Ukrainian farmer and sugar
producer Astarta (AST PW). The loan will finance the company’s two-year
investment program to modernize sugar plants and improve their energy
efficiency, as well as purchase new farm machinery and construct new storage
facilities. “The new project will further integrate farmers into the company’s
domestic and global value chains,” IFC commented.

Alexander Paraschiy: Being one of the least leveraged agricultural companies, Astarta
continues to count on cheap debt financing from Western financial institutions
as part of its strategy, which now is focused on boosting internal efficiency.
That will create the grounds for mid-term value growth of Astarta, despite an
expected decline in P&L indicators this year, driven by unfavorable
commodity trends in late 2017 and early 2018.