EBRD could provide $15 mln loan to Agrofusion to build tomato plant

The European Bank for Reconstruction and Development (EBRD) could provide a $15 million loan to Agrofusion, the largest Ukrainian vertically integrated industrial tomato paste producer created by former co-founder of Sandora juice producers businessman Serhiy Sypko.

According to a posting on the EBRD's website, the long-term loan would help the company to partially finance construction and purchase of equipment for the third tomato paste plant in Ukraine and promotion of tomato paste sales on foreign markets.

The EBRD Board is to discuss the provision of funds on December 14.

Total cost of the project is $50 million.

Governor of Kherson region Andriy Hordeyev said in an interview with Interfax-Ukraine that Agrofusion is looking for a land parcel to build the new plant.

"We are working on the loan of Agrofusion that would expand the tomato processing capacity in Hola Prystan to 300,000 tonnes a year. We are looking for one more land parcel to spend UAH 3 billion of investment from them in construction of the tomato paste plant," he said.

As reported, in May 2016 the International Finance Corporation (IFC) from the World Bank Group said it would provide $10 million to Agrofusion Group to boost its working capital.

Agrofusion Group was founded by Sypko in 2007. Agrofusion Group in 2014 reached its maximum production of 52,778 tonnes of tomato paste, in 2015 it expanded its capabilities through investment, reaching a figure of 61,500 tonnes.

The company’s operational assets include two tomato paste plants with total processing capacity of approximately 480,000 tonnes of tomatoes per season; two seedling green-houses; and 20,500 hectares of irrigated leased land in Mykolaiv and Kherson regions as well as modern farming equipment.