Economics

EBRD provides €25mn loan to Kazakhstan’s TBF Holding Group for agricultural exports

EBRD provides €25mn loan to Kazakhstan’s TBF Holding Group for agricultural exports

The European Bank for Reconstruction and Development (EBRD) is extending a senior loan of up to €25mn to TradeAgra and its affiliated companies within Kazakhstan’s TBF Holding Group to back agricultural commodity trading and exports. TBF Holding Group is a privately owned agricultural commodity trader operating in Kazakhstan. The financing will supply seasonal working capital for the group’s procurement, processing, storage, transportation and export activities.

The loan is also expected to help raise the group’s trading volumes of organic agricultural crops produced in Kazakhstan. According to the EBRD, the expansion of organic crop trading is meant to support agricultural practices linked to lower fertilizer use and better soil management. The financing will be complemented by a €500,000 investment grant under the EBRD’s Agrifood Nexus programme.

The grant is financed by Germany through its International Climate Initiative and will be used to support the development of organic agricultural production and exports. The programme is expected to boost demand for organic crops while supporting measures designed to reduce fertilizer and water use in agricultural production. Alongside the loan and grant funding, the EBRD will provide technical cooperation aimed at improving the sustainability and inclusiveness of agricultural supply chains connected to the group.

This will include training programmes for TBF Holding employees and farmers supplying agricultural commodities to the company. The technical cooperation component will also include targeted engagement with women farmers and measures aimed at introducing more inclusive procurement practices.

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