State Food Grain Company of Ukraine can be divided into three companies
To pay off the debt of the State Food Grain Company of Ukraine (SFGCU) on a Chinese loan, the company itself can be divided into three projects.
The government will present the plan for restructuring the Chinese loan to SFGCU on November 18th, AgroPolit reports. The restructuring project was developed for a month.
SFGCU can be divided into three projects: “Grain trader”, “Logistic business” and a project with the code name “Joint venture Ukrainian-Chinese Infrastructure Fund”
The Zernotrader project is a merger of the grain business of the State Food and Grain Company of Ukraine and the state-owned grain trader Agrarian Fund PJSC.
It is planned to transfer a part of the SFGCU loan – about $200 million to the newly created company. The Chinese grain trader COFCO is considered as the Head of this project. They plan to divide the responsibilities of the State Food and Grain Group of Companies before the Chinese bank between the Grain Trading and COFCO project or create a pool of companies for the supply of grain to China.
The Logistics Business project covers elevators and two port grain terminals of the corporation. This part will pay off $300 million of the debt of the State Food and Grain Corporation. Further – transfer for privatization in full or in separate parts.
The project, tentatively titled “Joint Venture Ukrainian-Chinese Infrastructure Fund”, aims to attract investment in infrastructure assets. From the Chinese side – the founder of the Eximbank of China, from the Ukrainian side – the State Enterprise “National Investment Fund”. This project will pay off a debt in the amount of at least $300-500 million, from Ukraine’s side – domestic government loan bonds or property rights to this project.
As USM previously reported, the State Food and Grain Corporation of Ukraine does not have enough funds to pay off the “Chinese loan”.