LLC TSUKORAGROPROM
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Astarta is a leading vertically-integrated agricultural holding in the Ukraine focused primarily on the cultivation of sugar beets, grains and oilseeds, the production of sugar and related products (molasses and granulated beet pulp), soybeans processing, and dairy farming.
What is our funding objective?
FMO financed Astarta’s USD 25 mln 2017 Green Capex program, consisting of efficiency improvements of the sugar production capacities in the eight sugar factories of Astarta, the implementation of Best Available Technology (“BAT”) program (including waste water treatment measures).
Why do we fund this investment?
FMO supports Astarta, its long-term partner and major agribusiness player in Ukraine with up-stream linkages in the agricultural sector. Astarta employs over 13,000 people mainly in rural areas and contributes to Ukrainian trade balance with export of agricultural products.
What is the Environmental and Social categorization rationale?
E&S category is B (medium to low) risk. Over the years of partnership, AG has greatly improved its E&S management and performance in line with the agreed ESAP of the previous financing. AG has a properly functioning ESMS in place and data quality is continuously improving. The main E&S risks are OHS related, with focus on accident prevention. Given the improved performance and that the loan will specifically be used to improve water usage, waste water treatment, and other best available techniques, no ESAP will be required. IFC PS 1-4 are triggered. PS 5-8 are not relevant as the project takes place at the existing company site.
- Region
- Europe & Central Asia
- Country
- Ukraine
- Sector
- Agribusiness, Food & Water
- Effective date
- 6/2/2017
- End date
- 7/16/2021
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B