28 August 2014
Ukrainian grain trader and leading sunflower oil producer Kernel (KER PW) reported on Aug. 28 that it has renewed its pre-export syndicate credit from European banks. The one-year revolving facility has a limit of USD 320 mln and an option to increase to USD 400 mln. The loan completes the company’s refinancing needs for the 2014/15 marketing year, Kernel’s CFO said in the release. Two weeks before, the company reported it had secured pre-export financing from European banks for up to USD 280 mln.
Alexander Paraschiy: It was very important to secure refinancing for Kernel, whose outstanding short-term loan amounts are usually higher than its one-year operating cash flow. This loan is especially encouraging after agricultural holding Mriya (MAYA GF) faced refinancing troubles a month ago. Clearly, Kernel’s positive image on the international capital markets made it easier to secure refinancing than for Mriya. Still, cause for caution remained before this news as a very unstable situation in eastern Ukraine has made international lenders less willing to deal with Ukrainian partners.