Kernel will receive USD 80 million of pre-crop financing
2014-02-25 16:52:50
According to the official information released by the holding on its official website, Kernel entered into USD 80 million credit line agreement with syndicate of Ukrainian and European Banks. Company also stated that the funds attracted will be used for financing of the working capital dedicated to the company’s crop production in 2014. Financial Analyst of UkrAgroConsult, Alex Morgun noted that Kernel ended 3 months period from June 30 2013 to September 30 2013 with net loss of USD -31.9 million, compared to USD 37.8 million for the same period in 2012. Ending result in red was the result of significant decline of sales revenue for the company by -19.9% for the period of three months in 2013 compared to 2012 level. Kernel also received credit rating downgrade as the result of lowered credit rating of Ukraine. While the conditions of the credit line were not made public, we expect worse conditions for the company compared to 2013 credit rates.
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