Kernel, one of the largest Ukrainian farming groups, has agreed with a syndicate of banks on the prolongation of a loan tranche of $222 million, reads a report of the company posted on the Warsaw Stock Exchange (WSE).

The report says that the funds are being raised to finance the purchase, storage and processing of sunflower seeds to produce oil and cake for sale on the domestic or export markets.

Kernel noted that a loan of $500 million was raised in August 2011: it consisted of two tranches – one worth $278 million until July 31, 2014 and a renewable one-year tranche of $222 million.

The group said that Kernel Trade LLC acts as a borrower, and the agreement signed on August 21, 2013 will take effect from the date of its registration in the National Bank of Ukraine (NBU) – in early September.