Redcliffe Partners advises EBRD and IFC on the high-profile project financing of a new grain terminal in Yuzhny Port

Redcliffe Partners acted as legal counsel to EBRD and IFC in connection with extending two parallel senior secured loans to M.V. Cargo for a total amount of USD 74 million, to finance the construction of a new private grain terminal in Ukraine’s Black Sea commercial port, Yuzhny. The total projects costs are estimated at some USD 150 million.

The project is being undertaken jointly by M.V. Cargo, Cargill, the world’s largest provider of agricultural products and services, and the Ukrainian Sea Ports Authority, a state enterprise managing Ukrainian seaports and infrastructure. The new terminal, which is expected to begin operations in spring 2018, will allow the cargoes of high tonnage vessels to be processed, and will be capable of handling up to 5 million tons of grain annually.

Redcliffe’s team advising on the transaction included Olexiy Soshenko, managing partner, Evgeniy Vazhynskiy, associate and Anatoliy Doludenko, junior associate. The scope of legal work undertaken included conducting legal due diligence, drafting transaction documentation and security documents, providing advice on Ukrainian land, regulatory and currency control issues. The team has previously been involved in a number of high-profile terminal financings in Ukraine, including those in Odessa, Illichivsk and Mykolayiv.

Commenting on the project, Olexiy Soshenko, Head of the firm’s Banking & Finance practice, said: “We are proud to have been able to support our long-standing clients in this strategic project finance transaction. The new terminal will significantly contribute to port facilities in the Black Sea region, and will benefit Ukrainian farmers and the overall development of agribusiness in the region.”

Clifford Chance advised EBRD and IFC on the English law aspects of the financing.