EBRD to recapitalize MK Group

The European Bank for Reconstruction and Development (EBRD) and the MK Group company, part of the AgriEurope holding company, are going to sign a recapitalization agreement at a ceremony on Friday, July 5th, MK Group announced today in a release.

AgriEurope also owns Carnex, Sunoko, MK Commerce, and Agroinvest Ukraine.

The signing ceremony at the sugar plant Donji Srem in Pecinci will be attended by MK Group President Miodrag Kostic and EBRD representatives Gilles Mettetal and Matteo Patrone.

Cooperation between MK Group and the EBRD has been going on since 2007, when this bank invested EUR 10 million in the development of primary agricultural production at Ukraine's Agroinvest. This loan helped the company build a state-of-the-art silo in Ukraine as well as expand agricultural production and provide support to local manufacturers, thus contributing to the improvement of environment.

Four years later, in 2011, MK Group received an EUR 80 million loan from the EBRD to improve agricultural activities within the group.

Part of this money was invested in the modernization of equipment at the sugar manufacturer Sunoko, with the aim of boosting its production capacity.