Ukraine's Kernel agro-holding entered into a pre-export credit line agreement with a syndicate of European banks : the line has a total limit of $150 million and is due to be repaid on August 1, 2025, with the possibility of further extension.
"This is the first new financing arrangement granted to the company by international creditors since the beginning of the crisis," Ukrainian media said, citing the company's stock exchange announcement.
According to it, the credit line opened on October 23 to finance working capital needs in Ukrainian oil exports.
Kernel is the world's largest producer and exporter of sunflower oil, as well as one of the largest producers and sellers of bottled oil in Ukraine. In addition, it cultivates and sells agricultural crops.
Kernel's net profit fell by 53% to $204 million in the first nine months of the financial year 2024 (July 2023-June 2024) with revenue down 4% to $2.595 billion, and EBITDA down 36% to $384 million.
The Fitch Ratings international rating agency has upgraded Kernel's long-term issuer default rating from CC to CCC- due to the timely repayment of $300 million Eurobonds on October 17 and improved operating performance.
Fitch estimated that as of October 2024, after the repayment of $300 million in bonds, Kernel would have $550 million in cash on its balance sheet (part of which is in an offshore zone), which, together with unused loans of about $250 million, would be enough to operational needs and redemption of the remaining Eurobonds coupons in 2024.
