Soufflet Agro Ukraine, with the participation of Raiffeisen Bank, executes a new transaction using an agrarian note
A new agrarian note has been issued in Ukraine with the participation of creditor Soufflet Agro Ukraine and depository institution Raiffeisen Bank, which is once again involved in transactions using this instrument.
The agrarian note was issued by an agricultural producer from the Sumy region and provides financing of over UAH 100,000, secured by a future wheat harvest.
Soufflet Agro Ukraine’s participation as a creditor confirms the readiness of leading agribusiness companies to adopt modern financial solutions for cooperation with agricultural producers.
“For us as a creditor, it is important to have an instrument that combines speed of execution with a proper level of legal protection. Agrarian notes allow for more flexible structuring of cooperation with agricultural producers while reducing operational risks and simplifying transaction processes. We already see the practical value of this instrument and plan to further develop financing using it,” said Tetiana Yatsenko, Director of Soufflet Agro Ukraine.
The repeated involvement of Raiffeisen Bank as a depository institution demonstrates the practical effectiveness of this mechanism and the emergence of a sustainable market practice for agrarian notes.
“Each new case of using an agrarian note shows that the instrument is gradually becoming part of the modern financial infrastructure of the agricultural market. For the National Depository of Ukraine, the priority is to create a reliable and convenient technological environment that enables market participants to execute such transactions quickly and transparently,” said Maryna Adamovska, Chair of the Management Board of the National Depository of Ukraine.
“We are seeing growing client interest in new financing instruments and are ready to provide high-quality depository support. Our repeated participation in such transactions confirms the practical market demand for this mechanism,” commented Bohdana Yefremova, Head of Depository Operations at Raiffeisen Bank.
Commenting on the development of the instrument, Kyrylo Mukhomedzianov, Project Manager of the IFC “Development of Access to Capital Markets for Ukraine’s Agribusiness Sector” project, noted: “We see that the momentum for the development of the agrarian notes market is driven by leading agribusiness creditors who are among the first to adopt this instrument. We expect that a much wider range of creditors will join in the near future, enabling the instrument to scale.”
More details about financing terms using agrarian notes are available within the Soufflet Agro Ukraine program.
The development of agrarian notes in Ukraine is supported by the International Finance Corporation (IFC, World Bank Group) in partnership with the Swiss Confederation.
An increasing number of executed transactions strengthens trust in agrarian notes and supports their integration into the day-to-day business processes of the agricultural sector.
