LONDON, ENGLAND – A group of Louis Dreyfus Co. subsidiaries received approval from the European Bank for Reconstruction and Development (EBRD) on Sept. 21 for a $100 million, three-year revolving loan to help finance working capital needs for agricultural commodity merchandising.
The subsidiaries are active in Bulgaria, Egypt, Kazakhstan, Poland, Romania, Tajikistan, Turkey and Ukraine.
According to the EBRD project description, strengthening the role of the private sector in the trade of specific commodities in these countries will improve efficiency while reducing food waste. The project aims to improve global food security by enhancing trade linkages and efficiency between Egypt, the world's largest grain importer, and some of its major suppliers, the EBRD said.
“Additionally, the project is expected to strengthen the EBRD's policy dialogue initiatives in the agriculture sector and provides an important demonstration effect in Tajikistan in terms of setting higher standards for business conduct,” the EBRD said.
Total project cost is up to $300 million, according to the EBRD project description. Actual financing needs will fluctuate based on current commodity prices, the EBRD said.
Founded in 1851 and active in more than 100 countries, Louis Dreyfus Co. is a leading international merchant and processor of agricultural goods, originating, processing, merchandising and transporting approximately 81 million tonnes of products annually.