AEQUO advised the European Bank for Reconstruction and Development on a EUR 40,000,000 new loan to Kormotech Group

AEQUO acted as Ukrainian law counsel to the European Bank for Reconstruction and Development (EBRD) in connection with a new EUR 40,000,000 loan to Kormotech, one of the top three market players in the Ukrainian pet food market and the primary Ukrainian producer of high-quality pet food for cats and dogs. Kormotech exports its products to 42 countries and has been ranked among the top 50 pet industry manufacturers in the world. The package is a syndicated A/B facility of which EUR 20 million will be provided by the Dutch-based and SDG-focused asset manager ILX Fund.

The loan has been provided under extraordinary circumstances amidst the ongoing full-scale russian invasion of Ukraine. The new financing will support Kormotech Group in implementing its plans related to a construction of a second pet food plant in Lithuania to expand its export operations and geographical diversification. In addition to the Ukrainian law elements, the project included English, Cypriot and Lithuanian law matters.

“In the current circumstances, EBRD is one of the few lenders prepared to provide new funding to Ukraine’s private sector. The importance of these transactions is, therefore, especially remarkable. Our team is honoured to have assisted EBRD with this transaction. We believe that this additional financing will help Kormotech to navigate these challenging times and increase resilience of Ukrainian businesses”, comments Yulia Kyrpa, executive partner at AEQUO.

AEQUO team was led by executive partner Yulia Kyrpa and included associates Dmytro Shudrenko and Konstantyn Dovhan.