Kernel has secured financing from FMO, a leading international sustainable finance institution committed to fostering economic growth and social development worldwide. This partnership represents FMO’s first direct investment in Ukraine since the onset of the full-scale war, marking it as a significant milestone for both parties.
Kernel’s adherence to international E&S standards facilitated the collaboration with the Dutch development bank. During the due diligence process, FMO evaluated the company’s financial performance alongside its environmental, social, and governance (ESG) practices, which received commendable ratings.
Sergyi Volkov, Kernel’s Chief Financial Officer, reflected on the journey:
“The path to this agreement involved multi-stage reviews and stringent requirements from FMO. It solidified our reputation as a transparent, dependable partner that meets the highest international standards. I am deeply grateful to the Kernel team for their remarkable effort and dedication. This collaboration with FMO is not only a major milestone in our financial history but also an encouraging sign to all Ukrainian businesses: upholding commitments and ensuring transparent reporting unlocks access to international financing.”
FMO joined Kernel’s Pre-Export Facility with a USD 25 million participation, led by Dutch Rabobank and ING Bank and supported by another development finance institution, the Black Sea Trade and Development Bank.
Huib-Jan de Ruijter, CO-Chief Investment Officer at FMO: “This project is a double first for FMO: the first direct investment in Ukraine since the full-scale war; the first project with Kernel Group; and furthermore, FMO hopes that this project will be a model for future FMO projects in Ukraine and a long-term partnership with Kernel.”
It is noteworthy that earlier this year, Kernel successfully redeemed USD 300 million in Eurobonds and secured USD 150 million in international financing for the first time since the full-scale invasion began. These investments will be directed towards funding working capital for the procurement of sunflower, rapeseed, and soybean seeds for subsequent processing and exporting of vegetable oils and meals to global markets.
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About FMO
FMO is the Dutch entrepreneurial development bank. As a leading impact investor, FMO supports sustainable private sector growth in developing countries and emerging markets by investing in ambitious projects and entrepreneurs. FMO believes that a strong private sector drives economic and social development and has a 50+ year proven track record in empowering entrepreneurs to make local economies more inclusive, productive, resilient, and sustainable. FMO focuses on three sectors with high development impact: Agribusiness, Food & Water, Energy, and Financial Institutions. With a total committed portfolio of approximately EUR 13 billion spanning over 85 countries, FMO is one of the largest bilateral private sector development banks globally.
