Board of Directors of KSG Agro announced that French Export-Credit Agency COFACE made a decision, by which it will guarantee the deal between KSG Agricultural and Industrial Holding Limited, Cyprus subholding of the Company, and I-TEK. Total amount of the contract is EUR 17 607 092.

According to the contract The Company will receive:

1. Supplies of the equipment for the pig breeding complex
2. Supplies of the genetic material for the pig breeding complex
3. Pig breeding complex reconstruction works
4. Supplies of the equipment for the energy pellets production (from straw)
5. Supplies of the equipment for animal food factory
At the current moment the Company, together with I-TEK, is in negotiations with different banks on the issue of receiving loan under this guarantee. KSG Agro plans to finalize those negotiations and to receive the money till the end of June, 2012. The Board of Directors informs that the reconstruction of the pig breeding complex has begun in May, 2012. The Company plans to finish 1 stage of the reconstruction in December, 2012, and to supply there 4 447 sows. The other stages of the reconstruction planned to be finished in 2013.

AgroInvest comment: KSG Agro has been marked for being one of the most active amongst agro holdings in Ukraine in terms attracting funds for company’s growth and modernization. Steps taken by the company’s management suggest long-term strategy chosen over short-term immediate benefits which is a positive factor for investors.

For more detail please refer to the UAIndex Daily (June 19 issue).

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