Launching a New Agribusiness Financing Programme: Easy Sowing in partnership with Syngenta
On 29 November 2017, Syngenta, in cooperation with partner banks ProCredit Bank and OTP Bank, announced the launch of a new programme – Easy Sowing – within the framework of the Financial Solutions project that provides agricultural producers with concessional loans for the purchase of Syngenta’s seeds and crop protection products (CPPs). The offer will be available in all regions of Ukraine until the 2018 sowing season.
With the Easy Sowing programme, agricultural producers will have access to simpler, cheaper financing, thus saving a considerable amount of time and money. A farmer who buys Syngenta products through official distributors will benefit from concessional loan rates for the purchase of seeds and CPPs at more favourable prices than the selected distributor’s regular price. In addition to the obvious financial benefits, the Easy Sowing programme also makes it easier for agricultural producers to prepare for spring field work, since all stages of the procedure are coordinated between partners and optimised as much as possible.
There are three months of winter ahead, but professional producers consider this time important for making strategic decisions. Thus, most enterprises plan their upcoming work schedule and purchases – even sales of the future harvest; they also negotiate with partners and investigate ways of financing their activities. Considering the peculiarities of agribusiness, particularly the length of the production cycle, it is necessary to invest a considerable amount of money in early spring; however, no income will be received earlier than July, after the first crops have been harvested. Therefore, the matter of financing is a major consideration. The more funding opportunities that agri-companies have, the more they will be able to invest in high-quality, efficient technology, which, in turn, will allow them to achieve better results.
“Easy Sowing is a programme with great opportunities for agricultural producers. We are convinced that our customers will appreciate it. What are the benefits for agricultural producers? Firstly, it offers advantageous terms and conditions. Our partner banks will provide financing at favourable interest rates for the purchase of Syngenta CPPs and seeds, starting at 7% per annum for hryvnia loans and 4% per annum for foreign currency loans. There will be no additional commissions. Borrowers can be sure that the procedure is simple and straightforward," said Helen Fairlamb, Head of Syngenta Financial Solutions CIS.
The programme developers say that producers who require loans of UAH 2 million to UAH 30 million can participate. The entire lending procedure from the moment of submitting documents takes up to five business days for an amount of up to UAH 8 million, and approximately two to four weeks for larger amounts.
"To take advantage of the programme, agricultural producers need to apply for a loan from one of our partner banks (or both) and go through a business and creditworthiness check. After successfully passing this, a credit limit will be approved by the bank. Next, the farmer provides the partner bank with the invoice for the purchase of Syngenta products from a participating official distributor. The producer will then receive a loan tranche at the reduced interest rate and pays the invoice to the relevant distributor. Everything is quite simple," Ms Fairlamb continued.
Under the Easy Sowing programme, Syngenta shares the seed and CPP costs with the producer, and ProCredit Bank is able to provide them with concessional interest rates. The Easy Sowing programme provides a standard loan approach, agreed by Syngenta and the partner banks, that offers agricultural producers a flexible loan repayment schedule, a 0% administration fee and no down payment. The maximum lending period is twelve months.
"We disbursed our first loan to an agricultural enterprise in 2008," said Viktor Ponomarenko, the Chairman of the ProCredit Bank Management Board. "Today, the loan portfolio for agribusinesses accounts for 45% of the bank’s total portfolio. We have many years of experience in this industry and are well aware that the timetable for sowing is extremely tight, so financing delays can cause a lot of disruptions in a producer’s annual work schedule. We make the decision quickly: generally in no more than five business days. Participation in the Easy Sowing programme allows us to issue loans on more favourable terms. In this way, we adhere to our main goal of promoting the development of high-quality and ethical businesses in Ukraine".
Syngenta is a leading agribusiness company that seeks to increase food security in the world, allowing millions of agricultural producers to make better use of available resources. Due to advanced scientific knowledge and innovative solutions, 28,000 professionals in more than 90 countries around the world work to improve modern approaches to crop growing. We are committed to preserve fertile land from degradation, promote biodiversity and revitalise rural communities. For more information, please visit: www.syngenta.com and www.goodgrowthplan.com. Follow us on Twitter® www.twitter.com/Syngenta