Project detail - NIBULON SA

Who is our customer

Nibulon is a leading Ukrainian integrated grain/oilseeds exporter and producer, operating one of the largest logistics networks of grain storage and transportation in Ukraine.

What is our funding objective?

FMO is participating in a syndicate of international banks to support Nibulon's growing working capital need due to increasing commodity prices.

Why do we fund this investment?

The funds ensure Nibulon’s capacity to source and export grains from Ukraine to deliver to countries where it is needed all over the world. In this way, FMO contributes to tackling zero hunger and to decent work and economic growth.

What is the Environmental and Social categorization rationale?

This concerns an E&S B+ categorized investment, as the project comes with potential adverse environmental or social impacts that extend site boundaries and might in part be irreversible, although they can be prevented and addressed through relevant mitigation measures. Nibulon is an existing FMO client since 2017. E&S Risks from previous investments were related to the construction and operational activities, however, this facility is for working capital only, and no new construction is expected. The working capital financing supports Nibulon’s ability to continuously run operations in purchase and trade of grains and oil seeds. Main E&S risks are related to air & GHG emissions, solid waste & wastewater, risks to the river where the vessels operate, grain quality & safety, occupational health and safety, and climate risks to agriculture. Overall, the risks are relatively low, and well addressed through Nibulon’s robust environmental and social management system which follows requirements of the World Bank Group (WBG) environmental health and safety (EHS) guidelines, and appropriate mitigation measures including the completed ESAP. IFC Performance Standards 1 to 4 apply. The grain storage and transportation used by the company are developed in compliance with national regulatory requirements and international standards, evidenced by the ISCC certification that the company holds. As the nature of this project does not involve direct land acquisition or direct use of natural resources but is instead facilitating optimization of existing facilities, PS5-PS8 do not apply to this project. Furthermore, supply chain issues are not considered a risk as Nibulon only sources produce in Ukraine which does not present risks regarding human rights and/or biodiversity. This is also evidenced by the company’s certifications that require supply chain traceability. FMO will periodically review the project’s ongoing compliance with the Performance Standards.