TRANS-OIL INTERNATIONAL SA
Status: Completed investmentWhy disclosure?
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In case of questions
In case of questions, please contact us at disclosure@fmo.nl
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
Trans-Oil Group is a leading vertically integrated farming, oilseed crushing, trading and transportation logistic provider with operations in Moldova and Ukraine. 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, Turkey and Asia.
What is our funding objective?
FMO participated for USD 20 million in a 1-year working capital facility with other financial institutions. The funds was used to finance Trans-Oil Group’s purchases of agricultural commodities from third parties until their export from Moldova.
Why do we fund this investment?
FMO supported farming in Moldova in general and a leading agribusiness player in particular by funding Trans-Oil Group’s seasonal working capital needs and so, helped Moldova to earn hard currency.
What is the Environmental and Social categorization rationale?
E&S risk is categorized as “B” (medium to low). FMO’s environmental and social due diligence indicates that the intended investment will have an impact, which must be managed in a manner consistent with the following Performance Standards: PS 1 – Assessment and Management of Environmental and Social Risks and Impacts; PS 2 – Labor and working conditions; PS 3 – Resource Efficiency and Pollution Prevention; PS 4 – Community Health, Safety and Security. IFC Performance Standards 5 to 8 are not applicable, since the project does not involve any construction or expansion of the supply base and, thus, does not carry risks associated with land acquisition, biodiversity reduction and threats to indigenous people and cultural sites. During the project implementation, FMO will periodically review the project’s ongoing compliance with the Performance Standards 1-4.
More investments
- Region
- Europe & Central Asia
- Country
- Moldova, Republic of
- Sector
- Agribusiness, Food & Water
- Effective date
- 7/12/2017
- End date
- 6/28/2018
- Total FMO financing
- USD 20.00 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