The European Bank for Reconstruction and Development (EBRD) is providing a US$25 million loan to Trans-Oil Group of Companies (Trans-Oil Group), a leading agricultural commodities trader and sunflower oil producer in Moldova, IPN reports, quoting a press release of the EBRD.

The press release says the EBRD’s loan will enable Trans-Oil Group to expand its grain terminal in the Moldovan port of Giurgiulești on the river Danube and to acquire and modernize a grain storage facility in the neighboring port of Reni, in Ukraine.

Trans-Oil Group uses Giurgiulesti, Moldova’s only port, as its main grain terminal. As the capacity of the Giurgiulești terminal is fully utilised at peak times, the company started renting and operating a grain storage facility in Reni, located only 3 km away in Ukraine. The company now intends to buy the Reni terminal, which is already well integrated into its operations but requires further modernization to accelerate and streamline the turnover of commodities.

Increasing the capacity of the silos at Giurgiulești and acquiring the storage facility in Reni will enable Trans-Oil Group to export Moldovan grain and oilseeds more efficiently and in greater volume. In addition, the expanded facilities will enable Trans-Oil Group to meet demand for storage and drying services from  independent Moldovan farmers  and exporters in Giurgulești. The Moldovan silos will be available for hire by third parties for operations of 250,000 tonnes or more.

The EBRD and Trans-Oil Group are longstanding partners. The Bank has provided loans to the company in 2004, 2009 and 2013 to finance acquisitions or the purchase of agricultural commodities as well as the construction of a sunflower seed crushing plant in Ceadir Lunga.

The EBRD is the largest institutional investor in Moldova and Ukraine. To date the Bank has committed €1.9 billion for over 100 projects in the agribusiness sectors of both countries.