📋 Tender Overview
Website customer/investment
https://www.kernel.ua/
Region
Europe & Central Asia
Country
Ukraine
Sector
Agribusiness, Food & Water
Publication date
1/13/2025
Effective date
12/13/2024
Total FMO financing
USD 16.00 MLN
Funding
FMO NV
Environmental & Social Category
(A, B+, B or C)
B+
Who is our customer
Inerco Trade S.A. a trading company of Kernel Group, which is a global leader in sunflower oil production and exports and the largest grain exporter from Ukraine.
What is our funding objective
FMO joined Kernel’s Pre-Export Facility with a USD 25 million participation, led by Dutch Rabobank and ING Bank and supported by another development finance institution, the Black Sea Trade and Development Bank. The funds of the Pre-Export Facility will be used for the procurement of sunflower, rapeseed, and soybean seeds from local farmers for subsequent processing and exporting of vegetable oils and meals to global markets.
Why do we fund this investment
This marks FMO’s first direct investment in Ukraine since the onset of the full-scale war, signifying a major milestone in our commitment to support Ukraine during these challenging times. The Ukraine agri-sector constitutes approximately 10% of Ukraine's GDP and employs one in six Ukrainian workers. By investing in this vital sector, we aim to help Ukraine earn hard currency and support the country's trade balance. The FMO Green Label is obtained for 70% of the transaction size because of ISCC plus certification, a voluntary certification scheme designed to support the transition to a circular economy and bioeconomy.
What is the Environmental and Social categorization rationale
E&S category B+, no ESAP applies. IFC Performance Standard (PS) 1 - 4 and PS 6 are applicable along with the General, Annual Crop Production and Vegetable Oil Production and Processing Environment Health & Safety Guidelines. E&S risks in their own operations and supply chain relate to overall E&S management and labor and working impacts (including Occupational Health and Safety) exacerbated by the contextual risks of the war and resources efficiency and pollution prevention in their operations (i.e., production, processing, and transport). Although Martial Law allows companies to lower labor law requirements, Kernel upholds its HR Policy and Procedures. Since 2020, Kernel is a signatory to UN Global Compact. Annually, they publish a sustainability report that is in line with the Global Reporting Initiative (GRI) standard.
