Kernel Grain Working Capital

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Provision of up to US$ 80 million in the form of a participation in a syndicated senior secured revolving credit facility to finance working capital needs of Kernel Group. Working capital financing is associated with the procurement, storage, transportation of grains and export sale. Provision of stable working capital financing for the Group's activities in Ukraine. The project is expected to have a significant transition impact under the "Competitive" and "Integrated" transition qualities through: (i) the expanded access to and usage of open digital solutions for precision agriculture which will benefit Kernel Group and partner farmers in their daily operations; (ii) the enhancement of the connectivity of silos by facilitating access to Kernel's logistics or other logistics solutions thanks to the "TransitHub". Through this online platform the Group will be able to service small and mid-size communities of farmers, including in remote areas. KERNEL HOLDING SA Kernel Group is a leading Ukrainian vertically-integrated agribusiness, engaged in oilseed crushing, grain trading, crop farming, transshipment, and silo services. USD 80,000,000.00 USD 300,000,000, comprising of existing and increased working capital financing Categorised C (2014 ESP).  Participation in a short-term syndicated facility for working capital purposes is not associated with significant environmental and social issues.  Environmental and social due diligence on the Group was undertaken by ESD in the context of the first financing for the Kernel Group (Operation No. 40295), and by independent consultants in the context of the second project with the Group (Operation No. 50363).  For this second project, an environmental and social action plans was developed and is still under implementation by Kernel.  Reporting to date has been satisfactory and demonstrates Kernel's compliance with national EHS requirements and the Bank's PRs.  The Bank will continue to monitor the implementation of the current ESAP to ensure on-going compliance.  Given this, and given the limited issues directly associated with this project, no additional actions are required of the Group. None. Michael Iavorskyi, IR Manager ir@kernel.ua +380 44 461-88-01 ext 72-75 https://www.kernel.ua/