FMO, the Dutch Entrepreneurial Development Bank, is proud to announce its partnership with Kernel, a global leader in sunflower oil production and exports and the largest grain exporter from Ukraine. This collaboration marks FMO’s first direct investment in Ukraine since the onset of the full-scale war, signifying a major milestone in our commitment to support Ukraine during these challenging times.
The Ukraine agri-sector constitutes approximately 10% of Ukraine's GDP and employs one in six Ukrainian workers. By investing in this vital sector, we aim to help Ukraine earn hard currency and support the country's trade balance.
This project is a double first for FMO
Huib-Jan de Ruijter, CO-Chief Investment Officer at FMO: “This project is a double first for FMO: the first direct investment in Ukraine since the full-scale war started; the first project with Kernel Group; and furthermore, FMO hopes that this project will be a model for future FMO projects in Ukraine and a long-term partnership with Kernel.”
An encouraging sign to all Ukrainian businesses
Sergyi Volkov, Kernel’s Chief Financial Officer: “The path to this agreement involved multi-stage reviews and stringent requirements from FMO. It solidified our reputation as a transparent, dependable partner that meets the highest international standards. I am deeply grateful to the Kernel team for their remarkable effort and dedication. This collaboration with FMO is not only a major milestone in our financial history but also an encouraging sign to all Ukrainian businesses: upholding commitments and ensuring transparent reporting unlocks access to international financing.”
FMO joined Kernel’s Pre-Export Facility with a USD 25 million participation, led by Dutch Rabobank and ING Bank and supported by another development finance institution, the Black Sea Trade and Development Bank. The funds of the Pre-Export Facility will be used for the procurement of sunflower, rapeseed, and soybean seeds from local farmers for subsequent processing and exporting of vegetable oils and meals to global markets.
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