OKKO finances agrarian of Chernihiv region with fuel for UAH 10 mln through commodity agricultural note
An agricultural producer from Chernihiv region attracted UAH 10 million in financing through the commodity agricultural note mechanism as part of an agreement with the OKKO network (JSC Concern Galnaftogaz) and the depository institution LLC Rosan Securities, the National Depository of Ukraine (NDU) reported.
Under the contract, the farm received fuel from OKKO for seasonal fieldwork. The obligations under this note will be repaid in kind – through the delivery of the future wheat harvest.
The NDU noted that this case is an example of the real integration of a digital tool into the operational activities of an agribusiness.
"It’s important for us to implement tools that enhance the reliability of our partnerships and enable more effective risk management. Agricultural notes open up new opportunities for structuring commercial relationships with agricultural producers," noted Ksenia Huseva, Head of Client Relations for the Agricultural Sector at OKKO.
According to Kyrylo Mukhomedzyanov, head of the IFC’s "Developing Access to Capital Markets for Ukraine’s Agricultural Sector" project, the market is currently transitioning to the formation of a fully-fledged ecosystem. The next step should be deeper integration of notes with banking products and the instruments of the Partial Agricultural Loan Guarantee Fund.
The project is being scaled up with the support of the International Finance Corporation (IFC) and Switzerland.
The OKKO Group unites over 10 diverse businesses in manufacturing, trade, construction, insurance, maintenance, and other services. The group’s flagship company is the Galnaftogaz concern, which operates one of the largest gas station networks in Ukraine under the OKKO brand, comprising 412 stations. The company develops its agricultural sector through forward programs and supplies farmers with fuel, fertilizers, and gas. The founder and ultimate beneficiary of the group is Vitaliy Antonov.
Rosan Securities LLC has been operating in the capital market since 1994, providing a full range of depository services.
