Kernel received the first agricultural commodity note in Ukraine

Agrarian Holding Kernel was the first in Ukraine to issue financing using a commodity agricultural note.

“This is an important step towards innovative financing,” Kernel said.

The document is registered in the Register of Agricultural Notes with the support of PJSC “National Depository of Ukraine” (NDU) — the official administrator of the system.

The commodity agricultural note was deposited in the Central Securities Depository, which ensures its legal status and high liquidity. Thanks to this, the instrument can be used as a reliable collateral in financial transactions and act as an alternative to traditional agricultural financing mechanisms.

“We see the future in the digitalization and standardization of processes. The use of an agricultural note is not just a tool, but a foundation for transparent and effective interaction between agricultural market participants. We are confident that this solution will allow us to flexibly and promptly support our partners, especially in today’s difficult market conditions,” said Kernel Commercial Director for Ukraine Oleksandr Golovin.

The issuance of the agricultural note was supported by the IFC project “Developing Access to Capital Markets for the Agricultural Sector of Ukraine”, which is implemented in partnership with the Swiss Confederation.

The initiative is aimed at expanding agricultural producers’ access to financing by strengthening the agricultural receipt instrument and preparing agricultural notes as a full-fledged asset class for securitization.

“We sincerely believe that agricultural notes will become one of the key lending instruments for the agricultural sector, especially to cover working capital needs and attract financing from capital markets,” said IFC project manager Kyrylo Mukhomedzyanov.

In turn, the head of the Kernel agribusiness financial service emphasized that such an instrument provides high legal transparency and allows reducing the cost of financing for agricultural producers, which is especially valuable for small and medium-sized farmers who have limited access to investments.

“Accordingly, in the future, the use of notes will help increase the confidence of investors and banks in the sector and allow free circulation in the market, opening up new sources of capital,” added Mykhailo Golubakha.

The company noted that the launch of the agricultural note is another confirmation of the strategic course for the digitalization of business processes.

Read also: Kernel took first place in the ranking of the country’s largest exporters for 2024.