VTB Bank has opened a RUB 800 million credit line for Agro-Invest, one of Russia’s leading agricultural holdings. The company is expected to use the facility to expand production, and in particular to purchase fuel, fertilisers and crop-protection agents. To date, Agro-Invest has used RUB 250 million of this credit line.
Agro-Invest is part of Black Earth Farming holding, investors in which include Swedish AB Kinnevik and Vostok Nafta Investment. The group currently comprises 32 Russian companies. This VTB deal is the first time that Black Earth Farming has raised funding from a Russian bank.
«We see opportunities for productive collaboration with our European partners despite today’s challenging geopolitical environment. I am confident that his project will boost economic development across Russia’s Black Earth region.».
Deputy President and Chairman of VTB Bank Management Board
Richard Warburton, Black Earth Farming’s CEO and President, provided the following statement: "The opening of a rouble credit line with VTB Bank is an important step towards diversifying BEF’s sources of funding and towards reducing the Company’s reliance on hard currency liabilities. This credit facility also opens up access for the Company to important subsidies, better suited to its working capital cycle, and will help in building long-term partnership with a leading Russian government bank."