KSG Agro S.A.

Capital/Financing Update • Jul 17, 2019

KSGAgro Agricultural holding restructured its credit debt with LandesbankBaden-Wuerttemberg (LBBW). In accordance with the agreement entered intoby KSG Agro and Landesbank Baden-Wuerttemberg (Germany), the debt of theagricultural holding to the German bank was restructured under a loanagreement dated 10.29.2012. The agreement states that within the loanagreement 11.5 million Euros was received, while the balance of the debtis 8.3 million eurosplus 1.352 million Euros interest.As a result, the agricultural holding is to pay 33% of the debt, whichamounts to 3.2 million euros.The LBBW loan funds were attracted by theagricultural holding in order to purchase equipment produced by theGerman company Big Dutchman for a pig farm in Niva Trudova(Apostolivskyi district, Dnipropetrovsk region) owned by Rantier LLC,which is part of KSG Agro. "The German bank LBBW has become anotherinternational lender who lent a hand to our agricultural holding,allowing the debt to be repaid with a high — almost 70% discount,"commented the agreement Sergiy Kasianov, chairman of the board ofdirectors of the agricultural holding KSG Agro. - For us, a successfulrestructuring means the release of working capital, which will be aimedat the development of existing and the start of new projects in thefield of crop and pig production. This year, the resolution of creditdebt issues will remain among our strategic priorities."DOSSIERLandesbankBaden-Wuerttemberg (LBBW) is a German international universal bank,which is among the top 10 banks in Germany, being the largest land bank.It is controlled by the city of Stuttgart, land savings banks and theland of Baden-Württemberg. LBBW, headquartered in Stuttgart, and isGermany's largest public lender. As of the end of 2018, the bank'sassets amounted to 241 billion euros, and the number of employeesexceeded 10 thousand people. The banking network includes 160 branchesand service points in Germany and 17 other countries of the world, andthe network of its correspondent banks reaches 2.8 thousand banksworldwide.KSGAgrois one of the leading agricultural holdings in Ukraine, a Europeaninnovative groupof companies operating according to the principle of verticalintegration. Shares of the holding are listed on the Warsaw StockExchange. KSG Agro is part of the European Business Association (EBA).The main activity of the company is tillage and crop production, as wellas breeding pork. Since September 2014, KSG Agro has been implementing anew development strategy, according to which the company develops themost promising projects, primarily pig breeding, as well as cropproduction and the production of renewable biofuels (fuel pellets).