Kernel, Ukraine's leading grain exporter and the world's top producer and exporter of sunflower oil, has become the first company in Ukraine to issue a financing instrument using a commodity agrarian note. This marks a landmark step forward in the development of innovative agri-finance tools in the country.
The note has been officially registered in the Agrarian Notes Registry with the support of the National Depository of Ukraine (NDU), which acts as the official administrator of the system. It has also been deposited with the Central Securities Depository, ensuring its legal status and high liquidity.
This structure enables the commodity agrarian note to be used as secure collateral in financial operations, offering a reliable and flexible alternative to conventional financing mechanisms in the agricultural sector.
"We see the future in the digitalization and standardization of agri-financial processes. The agrarian note is not just a financial instrument - it's a foundation for transparent, efficient, and scalable cooperation within the agri-market. We are confident this solution will allow us to swiftly and flexibly support our partners, especially under today's complex market conditions," said Oleksandr Golovin, Commercial Director for Ukraine at Kernel.
The issuance was supported by the IFC "Ukraine Agriculture Capital Markets Development Project," implemented in partnership with the Swiss Confederation. The project aims to broaden access to finance for agricultural producers by strengthening the crop receipt system and developing agrarian notes into a full-fledged asset class for securitization.
"We firmly believe that agrarian notes will become a key credit instrument in Ukraine's agri-sector - particularly for covering working capital needs and attracting long-term financing from capital markets," noted Kyrylo Mukhomedzianov, Project Lead at IFC.
"A commodity agrarian note offers high legal transparency and reduces the cost of capital for farmers. This is especially beneficial for small and medium-sized producers with limited access to traditional investment sources. Over time, these instruments will help boost investor and lender trust, support market liquidity, and open up new capital channels," emphasized Mykhaylo Holubakha, Head of Agribusiness Finance at Kernel.
This pioneering issuance further reinforces Kernel's strategic focus on digital transformation and market innovation. The company continues to lead efforts to shape a modern, transparent, and producer-oriented agricultural finance system in Ukraine.