KSG Agro has increased its credit line with Tascombank by 50%, from USD12 million to USD18.5 million, the press service of the agricultural holding reports. The funds will be intended to replenish the working capital of the holding’s enterprises, in particular, for sowing and harvesting campaigns, modernizing the pig farm in the village of Niva Trudova.

At the beginning of 2021, a number of enterprises belonging to KSG Agro holding signed agreements with Tascombank to change the credit limits. Lines of credit opened for the companies Rantye, KSG Dnipro and Strong-Invest in total increased from USD 12 million to USD 18.5 million (or UAH 522 million). According to the terms of the agreements, the credit lines are multicurrency (UAH / USD). Loan agreements are valid until the end of 2024.
According to Sergiy Kasianov, Chairman of the Board of Directors at KSG Agro, the purpose of the loans is to replenish the working capital of the holding’s enterprises engaged in the cultivation of agricultural crops and animal husbandry. “We can use these lines for sowing and harvesting operations. We also plan to use some of them for further reconstruction and modernization of our pig farm in the village Niva Trudova, Apostolovsky district, Dnipropetrovsk region. At the same time, the farmer emphasized that, according to the terms of the agreements, the company would use credit funds if necessary, and the presence of the line does not mean that the funds will be necessarily utilized in full.
According to Oleksandr Golizdra, Deputy Chairman of the Commission for Analysis of Securities Markets of the Ukrainian Society of Financial Analysts (USFA), the increase in the credit line for the Company testifies to the high level of the bank’s confidence in the borrower and in its operating activities. It also suggests that the Bank sees prospects in the client’s business and predicts positive financial flows both in the short and medium term. “In addition, no Bank will issue a loan without good liquidity collateral – real estate, industrial complexes, equipment, – emphasizes the expert. – And in this case, we can talk about the sufficiency of fixed assets of KSG Agro to provide such collateral.”