Redcliffe Partners acted as a legal counsel to EBRD in relation to providing a USD15 million loan to Agrofusion group for financing the construction of its third tomato processing plant. This expansion will allow Agrofusion to increase its production capability by around 50 per cent.
The new plant will be able to produce about 34,000 tonnes of tomato paste. In addition, by using the loan Agrofusion will introduce a range of high-tech farming improvements, reduce water leakage in irrigation systems, and reduce plastic waste throughout its entire production cycle.
Redcliffe’s team advising on this transaction comprised Olexiy Soshenko, managing partner, Olesia Mykhailenko, associate, and Anatoliy Doludenko, junior associate. The legal work undertaken included reviewing loan documentation, conducting legal due diligence, and drafting Ukrainian law security documents as well as security perfection.
This transaction is important for Ukraine, as it is a great incentive in the development of green agribusiness solutions. It aligns with EBRD’s support for green businesses, which is aimed at creating well-functioning market economies. Agrofusion, a vertically integrated and family-owned group, will, through its new processing plant, have an opportunity to meet the growing demand for organic food products within Ukraine, and strengthen its export capacities.