Moldova's largest agri-industrial holding Trans-Oil Group will receive preferential financing worth $31 million to purchase grain in Ukraine.
As noted in its report, in particular, thanks to joint efforts to identify risks and optimal solutions to counteract them, the Netherlands Development Bank (FMO) along with BP, DFCD and Proparco (a division of the French Development Agency) signed with Trans-Oil Group an agreement on concessional financing of $31 million. These funds are intended to replenish the necessary capital of Trans-Oil Group and to purchase grain in Ukraine in order to fulfill its obligations to the region in a difficult geopolitical situation. As noted, the war in Ukraine has led most commercial banks to reduce their presence in the region, resulting in a funding gap. "Cooperation between development financial institutions (in this case FMO/Proparco for 2.5 years) and public funds (BP/DFCD for 5 years) plays a decisive and complementary role in the market," Trans-Oil Group emphasizes. As noted, the new financing will provide security to both existing and potential TOI lenders and will further stimulate grain purchases in Ukraine. FMO-A's contribution is $11 million, with the remainder coming from BP ($7.5 million), DFCD ($7.5 million) and Proparco ($5 million). Trans-Oil Group expressed deep gratitude and appreciation to all development partners who support it and contribute to financial stability in the region, emphasizing that it remains true to its goals, operating principles and commitments for the benefit of the consumer, market growth and the economy. Trans-Oil Group is the largest buyer and exporter of grains and oilseeds in Moldova. The Group operates 16 storage facilities throughout the country, capable of storing more than 750 thousand tons at a time, 2 oil production plants in Balti and Ceadir-Lunga - with a daily capacity of 1200 tons and 400 tons, respectively. It also owns 2 grain terminals and a sunflower oil terminal in Giurgiulesti port, as well as a number of agricultural, transportation and infrastructure enterprises in many countries. The CEO and founder of Trans-Oil Group is Vaja Jhashi, who owns 87.5% of Aragvi Holding International Ltd (the parent company of Trans-Oil Group), while the remaining 12.5% is held by Oaktree Capital Management LP. // 16.10.2023 - InfoMarket.
