Ukraine Agri-Food Value Chain Project consists of an EIB loan, backed by Technical Assistance to provide free-of-charge support to both partner financial intermediaries and potential borrowers. The Technical Assistance team’s mission is to help partner banks and potential borrowers to comply with the EIB’s requirements and to go through the sub-project approval process efficiently.
Beyond this support, the Technical Assistance Team has joined forces with the Ministry for Development of Economy, Trade and Agriculture of Ukraine to support developing public infrastructure financing proposals in the targeted value chains through the Project Implementation Unit (PIU). The PIU’s mission is to advise on lending to the public and private sector’s agricultural operators identified by the Technical Assistance Project under the Financing Agreement.
Information for Financial Intermediaries
The Technical Assistance team offers all participating banks free and easy-to-use services targeted at increasing profitability and developing a wider client base
- business growth support: identifying profitable projects, helping to produce investment project documents such as economic forecasting, legal and business appraisal, risk analysis and action setting;
- support in drawing up investment projects under the agreement based on European Union and EIB criteria;
- upgrading the agricultural finance and agricultural loan portfolio management skills of the bank’s staff;
- raising financial competencies and skills in agribusiness management for the bank’s clients.
Technical Assistance experts are available to do the following training for the Project’s partner banks.
- Training courses for banks. These courses provide information on the credit, our Technical Assistance and how to comply with the requirements of the Ministry of Finance and Ukreximbank. By the end of the courses, specific documents and cases will be dealt with, and potential loan projects may be brought up for review.
- Banking business development training. The training aims to build demand for financing in agri-food players and expand the bank’s business, for example by setting up partnership programs with suppliers.
If you are interested in participating, please contact Pavlo Kostromytskyi at PKOS@niras.com for further information.
Information for Agribusinesses
Technical Assistance to agribusinesses in the cereals and oil value chains can assist with the process of identifying and implementing investment projects which:
- increase the efficiency of economic activity of the project participants by creating new business opportunities;
- adapt business projects to the social and environmental requirements of the European Investment Bank.
Technical and advisory support is provided for the Project participants in the following areas:
- evaluation of the business project concept;
- assistance in developing a business idea;
- support in writing a business plan;
- consulting activities in the implementation of the business plan.
To meet the needs of the Project participants and at the request of stakeholders, a series of trainings and events (seminars, round table discussions, etc.) have been and will be organized on the following topics:
- optimizing the organization and management of business activities;
- technical and technological aspects of doing business;
- improving the quality control system and product safety;
- innovative areas of production.
If you are interested in learning more about advisory services to help you obtain a loan for your agribusiness through one of our partner banks, we encourage you to contact Oleg Osaulyuk at OLOS@niras.com or one of the involved Regional Agricultural Extension Service Provider from your region (list found at the bottom of the page).
Information for Aquaculture and Fisheries
The EIB loan is the first international financial program providing targeted assistance to the Ukrainian fisheries sector. The main areas of financing under Ukraine Agri-Food Value Chain Project for representatives of aquaculture and fisheries could include:
- acquisition of stock and / or breeders of aquatic living resources;
- purchase of biologically active substances and feeds to improve productivity;
- purchase and / or repair of equipment and machines for primary production, transportation for modernization of the production process;
- purchase, repair and modernization of processing equipment, including equipment: refrigeration; smoking room; for drying; for slicing; for the production of preserves, etc.;
- laboratories and quality control services,
- applied research;
- education and dissemination of agricultural knowledge;
- fisheries monitoring and control systems;
- logistics infrastructure.
The Technical Assistance Team offer the following services:
- support at all stages of the investment project – from the moment of the idea to the receipt of credit funds;
- consultations on:
- registration of documents;
- optimal ways of modernization;
- selection and cooperation with a credit and financial institution;
- ways to create value chains;
- harmonization of activities in accordance with the social and environmental requirements of the European Union.
If you are interested in learning more about advisory services to help you obtain a loan for your business through one of our partner banks, we encourage you to contact Vitalii Radko at VRAD@niras.com or one of the Regional Agricultural Extension Service Provider from your region.
The basic criteria for potential projects/borrowers come from conditions of the Project “Ukraine Agri-food APEX Loan” and specific requirements of Ukrainian participating banks:
Ukrainian registered company successfully operating on the market for at least 1-year period. The company should be either profitable or, in case of negative result in a certain period, to be able to clearly justify the reasons for temporary difficulties (e.g. impact of weather conditions, corona-crisis, etc.)
Potential borrower might be producing, processing, transport/logistics or other company representing any particular element of the above-mentioned value chains
The program is tailored primarily for investment needs of Ukrainian businesses (silos construction, buying irrigation technologies, introduction or scaling of aquaculture projects, etc.)
Financing of permanent working capital expenditures for the periods of at least 2 years is also possible
For quick preliminary analysis the applicant presents its balance sheet and income statement for last 2 years and recent reporting period, and information on the amount, duration and purpose of the project. Agricultural producers are also requested to provide its statistical forms 21, 29, 50 for the same periods.
For investment projects own participation of the borrower at the level of appox. 30 % is required.
For the projects of EUR 3 mln and more – business-plan will be required after preliminary analysis