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Ukrainian orders create jobs in Thisted, Denmark

With a guarantee from EKF, Cimbria Unigrain's customer in Ukraine gained access to low-cost financing instead of the high Ukrainian interest rate. Two orders, each covering eight large silo facilities, created new jobs at the company in Thisted, Denmark.
Case facts
What
Cimbria Unigrain supplies silos for storing grain and seed and plants for cleaning and drying grain and seed for a customer in Ukraine
How much
Provisionally two orders worth EUR 20 million each
EKF's role
The guarantee from EKF provided the Ukrainian customer with lower-cost financing than available in its own country and made it even more attractive to purchase equipment from Cimbria Unigrain.
EKF product
Buyer credit guarantee
When
2009-2011
Call Me
  • Step 1
    The challenge
    Quote

    The guarantee is a huge advantage for Nibulon because it allows the company to borrow money from a Western European Bank at a far lower interest rate than in Ukraine.

    Henning Roslev Bukh, sales Director, Cimbria Unigrain

    ​In 2009, Cimbria Unigrain secured the first of two large orders from the Ukrainian grain and seed exporter Nibulon. The order worth EUR 20 million covered eight silo facilities for storing, drying and loading grain and seed.

    The Ukrainian customer however was obliged to borrow at a high interest rate in Ukraine to finance the major equipment purchases, which in turn created uncertainty regarding the order for the Danish supplier.

    Nibulon is Ukraine's largest grain and seed exporter and a high-growth company. Nibulon uses Cimbria Unigrain's equipment to extend and standardise its storage and transportation facilities by the rivers of Ukraine and the Black Sea.

    Cimbria Unigrain has supplied equipment to Nibulon since 2003 and was naturally keen to maintain the good customer relationship.

  • Step 2
    The process

    ​The orders from the Ukrainian customer were to provide the basis for hiring new employees at the Danish manufacturing plant in Thisted.

    Cimbria contacted EKF, who agreed to investigate the viability of the export order and the options for financing via a guarantee from EKF.

    "Even allowing for the premium payable to EKF, Nibulon is making a big saving," says Sales Director Henning Roslev Bukh.

    He adds that Nibulon regards Cimbria Unigrain and EKF as important and regular business partners.
    EKF's involvement strengthened the ties between the Danish company and the customer in Ukraine, which gave the customer an added incentive for doing business with Cimbria.

  • Step 3
    The solution

    ​EKF offered to guarantee Nibulon's loan to purchase equipment from Cimbria Unigrain. This allowed the Ukrainian customer to secure a loan at a far lower interest rate than in Ukraine.

    "Nibulon is very pleased that it was possible to arrange a Danish guarantee for this order. We might well have got the order anyway, as Nibulon has ordered from us for many years and is very satisfied with our products.

    Nibulon could perhaps have financed the purchase with equity, but it is often cheaper to borrow the money than to use equity, and equity is greatly needed in a growth-oriented company such as Nibulon," says Henning Roslev Bukh.

    In 2010, Cimbria Unigrain took yet another order for eight silo facilities – and once again, EKF provided a guarantee for the buyer's payments. Cimbria Unigrain has hired 30 employees solely as a result of the latest order in 2010 from Nibulon for eight silo facilities. The facilities are scheduled for delivery by May 2011.

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