TOI Commodities SA
Status: Investment in contracting phaseWhy 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 prospective customer?
Trans-Oil Group (TOG) is a leading vertically integrated agribusiness group located across Moldova, Ukraine, Romania, and Serbia, offering services such as grain handling, storage, and trading, farming, and oilseed crushing. The company owns a unique distribution and export network in Moldova with extension to the Black Sea region and upstream to the Danube basin. More than 80% of the sales of the Company are exported via large international traders to EU, Middle East and North Africa (MENA) region and Turkey.
What is our funding objective?
Up to USD 30 mln long-term FMO loan intends to finance the WC needs for the purchases of commodities from Ukraine. The commodities sourced from Ukraine will be stored either in Reni port in Ukraine or in-land storage facilities in Moldova before export.
Why do we want to fund this investment?
Due to Ukraine-Russia war and disrupted logistics chain in Black Sea region, Moldova became one of the safest gateways to tranship Ukrainian crop to international markets. TOG’s well integrated distribution and export network in Moldova as well as two grain terminals in Reni Port of Ukraine, enables to increase business volumes from Ukraine. The transaction will contribute to the global food security, since it will finance the origination from Ukraine and thereafter exporting to international markets (especially LICs or LMICs).
What is the Environmental and Social categorization rationale?
FMO’s E&S risk categorization for traders with large processing plants applies a B+ risk category. Business activities include aggregation, distribution, processing, and trading of agro commodities. E&S operational risks and impacts are mostly site-specific with exception of risks of the supply chain. FMO’s Environmental and Social assessments via monitoring and due diligence activities indicate that the investment may have impacts that must be managed consistently with the following IFC Performance Standards: IFC PS1: Assessment and Management of Environmental and Social Risks and Impacts, PS2: Labor and working conditions, PS3: Resource Efficiency and Pollution Prevention, and PS4: Community Health, Safety and Security are applicable to this project. PS6 (Biodiversity Conservation and Sustainable Management of Living Natural Resources) is triggered mainly due to the potential indirect impact of the primary supply chain. PS5 (Land Acquisition and Involuntary Resettlement), PS7 (Indigenous Peoples), and PS8 (Cultural Heritage) are considered not applicable to the company operations.
More investments
- Website customer/investment
- https://transoilcorp.com/en/
- Region
- Europe & Central Asia
- Country
- Moldova, Republic of
- Sector
- Agribusiness, Food & Water
- Publication date
- 9/8/2023
- Deadline for feedback
- 11/7/2023
- Total FMO financing
- USD 5.00 MLN
- Funding
- LUF
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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+