EBRD Allocates USD 30 Million In Loans To Astarta

The European Bank for Reconstruction and Development (EBRD) has allocated loans worth USD 30 million to Kyiv-based Astarta agri-industrial holding, one of the largest sugar producers in Ukraine.

The company has said this in a statement, Ukrainian News Agency reports.

“Astarta will receive a USD 30 million funding package from the EBRD, which will help the company be more resilient in the adverse conditions caused by the Russian war against Ukraine. The package consists of a USD 21 million EBRD loan and a USD 9 million sustainability-related loan funded by the Clean Technology Fund (CTF)," it was said.

According to the report, Astarta plans to use funding to modernize and improve the energy efficiency of existing production facilities, implement regenerative and sustainable agricultural practices to improve business sustainability, reduce production and energy costs while increasing productivity and operational efficiency, and ensure sufficient working capital financing to maintain its activities at the pre-war level.

At the same time, financing of the capital investment plan will also help the company develop agricultural production, soybean processing and sugar production in conditions of instability associated with the war.

As Ukrainian News Agency earlier reported, last year the company reduced its net profit by 46.8%, or EUR 57.327 million, to EUR 65.164 million.

Also in 2022, Astarta reduced EBITDA by 23.2% to EUR 154.8 million, increasing revenue by 3.8% to EUR 510.1 million.

The company cultivates about 220,000 hectares in seven regions, has six sugar factories, dairy farms for 22,000 cows, and a bioenergy complex in Hlobyne, Poltava Region, which forms an industrial cycle with a sugar factory and a soybean processing plant.

40% of the holding company Astarta Holding N.V. is controlled by Viktor Ivanchyk through Cypriot Albacon Ventures Limited and 29.9% by Canadian Fairfax Financial Holdings Ltd.