Kernel, the largest producer and exporter of sunflower oil in Ukraine, became the first company in the country to receive a commodity agricultural note. About this reported the press service of the company.
The commodity agrarian note was deposited in the Central Depository of Securities, which ensures its legal status and high liquidity. Thanks to this, the tool can be used as a reliable collateral in financial transactions and serve as an alternative to traditional agricultural financing mechanisms.
“We see the future in the digitization and standardization of processes. The use of an agrarian note is not just a tool, but a foundation for transparent and effective interaction between agricultural market participants. We are confident that this solution will allow us to flexibly and quickly support our partners, especially in today’s difficult market conditions.”Oleksandr Golovin, commercial director of Kernel for Ukraine, noted.
The release of the agrarian note took place with the support of the IFC project “Development of access of the agricultural sector of Ukraine to capital markets”, which is implemented in partnership with the Swiss Confederation. The initiative is aimed at expanding agricultural producers’ access to financing by strengthening the instrument of agricultural receipts and preparing agricultural notes as a full-fledged asset class for securitization.
“We sincerely believe that agrarian notes will become one of the key instruments for lending to the agricultural sector, especially for covering working capital needs and attracting financing from capital markets.” – noted Kyrylo Mukhomedzyanov, head of the IFC project.
The launch of the agrarian note is a confirmation of the company’s strategic course on the digitization of business processes. Kernel strives to form a new quality of the market — efficient, transparent and focused on the needs of agricultural producers.
“An instrument such as a commodity agricultural note provides high legal transparency and allows to reduce the cost of financing for agricultural producers, which is especially valuable for small and medium-sized farmers who have limited access to investments. Accordingly, in the long run, the use of notes will contribute to increasing the confidence of investors and banks in the sector and will allow free circulation on the market, opening up new sources of capital.”, – emphasized Mykhailo Golubaha, head of the Kernel agribusiness financial service.
