The European Bank for Reconstruction and Development (EBRD) may issue up to $75 million in a senior secured revolving loan to 34 farms in Ukraine owned by NCH Agribusiness Partners L.P. (NAP) with the ultimate aim of improving farming yields and efficiency through better farm management and technology.

As the EBRD reported in a statement, the board of its directors is to consider the loan on April 16, 2013.

The project cost is estimated at $150-171 million.

"The project is expected to have strong demonstration effects in Ukraine stemming from the following: improvements in the productivity and efficiency of NAP's farms through the adoption of advanced farming techniques and environmentally sustainable farming practices; promotion of higher standards in farm management and corporate governance according to international best practices; and skills transfer to local employees and other farms with potential spill over effects to the broader industry," reads the statement.

As was reported, earlier, in spring 2009, the EBRD lent $50 million to NCH New Europe Property Fund L.P. under the management of NCH Capital Inc. to finance working capital of Ukrainian businesses controlled by the fund as a long-term revolving loan.

NCH New Europe Property Fund L.P. was set up in summer 2005. Its assets were invested in real estate and agribusinesses in Eastern Europe and former Soviet republics. According to the EBRD, the fund owned 35 Ukrainian agribusinesses and grain storage enterprises through majority stakes in three joint ventures in Ukraine.


KyivPost