EBRD to Lend $10 Million to AgroGeneration to Help Expansion

The European Bank for Reconstruction and Development will lend $10 million to AgroGeneration (ALAGR), a French operator of farms in Ukraine, to help the company double its arable land.

AgroGeneration, based in Paris, will also use the funds to upgrade and acquire agricultural storage, drying, loading and field equipment as well as to increase the number of silos it has in Ukraine, the EBRD said today in an e-mailed statement.

The project also includes a possibility for the EBRD to become a shareholder of AgroGeneration that produces cereal and oilseeds, according to the statement.

AgroGeneration now has six farms on 50,000 hectares (123,552 acres) of land in the north-western part of Ukraine and plans to control 100,000 hectares by the end of 2012, the London-based bank said.

To contact the reporter on this story: Daryna Krasnolutska in Kiev at dkrasnolutsk@bloomberg.net;

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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