Aequo advised POSCO International Corporation (Korea's largest trading company) on a secured USD 36,000,000 financing from Export-Import Bank of Korea (KEXIM) to Grain Terminal Holdings, a Singapore-based joint venture between Posco International Corporation and Orexim Group (Orexim) (a leading agri transshipment and exporting company in Ukraine), which controls an Ukraine-based private joint-stock company Mykolaiv Milling Works (MMW).
The security package includes a mortgage over the real-estate and moveable assets of MMW and a security over shares in various companies within the joint venture group.
MMW used the loan proceeds to refinance an existing EUR 31,000,000 loan from The Black Sea Trade & Development Bank (BSTDB) obtained to modernise and expand MMW's production facilities and increase its annual grain storage capacity to 2.5 million tons.
Aequo's team also assisted POSCO International Corporation and MMW with various project completion and port-completion matters related to the refinancing project.
Anna Babych, Partner and Head of Corporate/M&A at Aequo, commented: “Ukraine has great potential for further growth of its agricultural sector and especially now, when the Ukrainian Parliament has finally abolished the moratorium on sale of agricultural land, both investors and lenders are showing high interest in this industry. We are honoured to advise our long-standing client, POSCO International Corporation, on this deal and are proud that our client continues to lead the way for other large international players, arranging the provision of financial support to their Ukrainian subsidiaries, helping them achieve new business heights and expanding their business. At Aequo, we are both happy and excited to further strengthen our refinancing capabilities and agricultural industry focus by successfully completing this complicated and challenging deal.’’
In 2019, Aequo advised POSCO International Corporation on the purchase of a controlling stake in the grain terminal business from Orexim Group (Orexim) and the establishment of a joint venture over the business. As a result of the transaction, POSCO International Corporation became the first Korean entity holding operating rights to a grain storage facility overseas.
KEXIM is an official export credit agency (ECA) providing comprehensive export loan and guarantee programs to support Korean enterprises conducting business overseas.