CMS has advised ING and UniCredit as coordinators, and lenders Citibank, BNP Paribas, Natixis, Rabobank, Arab Bank and Banque de Commerce et de Placements (BCP) on a sunflower oil based pre-export financing of up to USD 400 million for Kernel Group, Ukraine’s leading agribusiness.
The lenders provided a secured revolving facility of up to USD 400 million which is secured by the assignment of export receivables and pledge of commodities and guarantees from Kernel’s key trading and operational companies. Due to its size and complexity it is likely to be regarded as the flagship agricultural commodity financing in CEE/CIS for this year.
CMS partner Mark Segall, who led the transaction, commented: “Despite the uncertain political situation, Ukraine’s sunflower oil exports have continued to attract the support of international lenders this year, demonstrating sustained confidence in the Ukrainian agricultural sector. By financing through Kernel’s Swiss and British Virgin Islands subsidiaries the transaction represented a classic off-shore commodity trade structure used in many other Ukrainian PXFs. CMS is pleased to have advised lenders to Kernel for the third successive year.”
The CMS team was led by Prague-based partner Mark Segall and further comprised seniors associate Andrew Hinstridge, associates Lucy Mosedale, Ross Douglas and trainee Grace Ho , together with senior associate Vyacheslav Ovechkin and associate Tetyana Mikhailenko (CMS Kyiv), partner Kaspar Landolt, and associates Andrea Ferchl and Mark Cagienard (CMS Zurich), partner Günther Hanslik and associate Kai Ruckelshausen (CMS Vienna) and partner Vivian Walry, and associates Nicolas Gerique and Andreia Mihai (CMS Luxembourg). Harneys provided BVI advice.