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CMS advises on a landmark financing of a new grain terminal construction project in Yuzhni port

14 August 2017

CMS* is pleased to announce that it has advised M.V. Cargo in respect of two parallel loans made available to it by the European Bank for Reconstruction and Development and the International Finance Corporation. The loans, totalling USD 74m, will partly finance M.V. Cargo’s construction of a new modern grain terminal in Ukraine’s Black Sea port of Yuzhni capable of handling up to 5 million tons of grain annually. The overall value of the investment into the project is expected to exceed USD 150m, and construction of the grain terminal is expected to be finalised in 2018.

This financing is one of the necessary steps in the establishment of a joint venture with Cargill, a leading international agricultural company – a transaction which CMS also advised on in 2016. It is a landmark project of strategic importance to Ukraine, intended to help sustain its leading position among grain exporting countries, delivering Ukrainian grain to markets all over the world. The financing will also serve as a positive signal to foreign investors and lenders considering investing or lending into Ukraine.

The CMS financing team was led by Simona Marin and Kateryna Chechulina, and included Khrystyna Korpan and other lawyers from CMS’ offices in Luxembourg and The Netherlands. Graham Conlon, Tetyana Dovgan and Vitalii Mainarovych also continue to remain involved on the corporate/joint-venture side.

Commenting on the transaction, Simona Marin, Partner in International Banking & Finance, said: "We take pride in our role supporting M.V. Cargo in this large-scale infrastructure project, in particular, the outstanding job done by our banking team”.

Kateryna Chechulina, Senior Associate in International Banking & Finance, added: “We are delighted to have been integral to its success, and to have worked on yet another high-profile banking and financing transaction in Ukraine.”

*CMS Cameron McKenna Nabarro Olswang