CHS Seasonal Financing

complete

The EBRD is considering a USD 120 million loan to CHS Inc., the largest domestic grain supplier in the United States and the world’s second largest agricultural cooperative. CHS Inc began its European operations in 2007 and is currently active in Ukraine and Russia through local subsidiaries, where it buys grains and oilseeds for export to international buyers. CHS intends to expand its operations from approximately 1.5m tonnes exported annually today to approximately 4.6 tonnes in 2013. It will also expand its operations into South-eastern Europe, Kazakhstan and potentially Turkey. CHS works by establishing long-term, mutually beneficial relationships with its crop suppliers. Through its network of local representatives, it can inform local producers and infrastructure operators of global trends in the agricultural sector, and provide operational advice. By connecting these local suppliers to the global market, and by providing pre-harvest financing in the case of long-term supplier, CHS can improve farming productivity in its areas of operation. This project is presented together with the Agripoint Port Terminal. It will additionally provide the working capital necessary for that project and shares in its transition impact. Bank funds will be lent to CHS Inc, which will on-lend via CHS Europe them to local CHS subsidiaries in the Bank’s countries of operations. These countries are listed above. USD 120m, of which USD 40m immediately and USD 80m from 2011. USD 180 million in 2010. The Project was Categorised B according to the EBRD’s Environmental and Social Policy 2008. The potential adverse future environmental and social impacts associated with the Project are site-specific and readily addressed through mitigation measures. Due diligence is still ongoing. Environmental and social due diligence questionnaires have been sent to the Company for completion regarding corporate policies and procedures and how the Company's Russian, Ukrainian and SEE subsidiaries appraise and manage environmental and social issues. Following completion of the EHSS due diligence an Environmental and Social Action Plan (ESAP) will be developed and agreed with the Company to ensure the Company's compliance with the Bank’s PRs prior to Board submission. The Bank will monitor the Company's environmental and social performance for the lifetime of the project through annual environmental and social reporting and via periodic site visits. The Company will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety. None. Claudio Scarrozza, CEO, CHS Europe E-mail: Claudio.Scarrozza@chsinc.com