Insurance contract of receivables under Ukrainian contracts worth 38 million EUR

FEERUM, a leading producer of comprehensive grain elevators in Poland, also operating on export markets, has signed an agreement with the Export Credit Insurance Corporation (KUKE) regarding insurance of receivables under two Ukrainian contracts with a total value of 34.9 million EUR (approx. 149 million PLN) concluded on December 20 this year and a contract worth 3.1 million EUR (approx. 13.3 million PLN) concluded by the Company with the same contractor October 16, this year. This is another agreement with KUKE regarding insurance of contracts carried out by FEERUM on the Ukrainian market.

The company concluded December 20 this year with the Ukrainian company EPICENTR K LLC from Kiev two large contracts for the sale of grain silo complexes. The first, for 8.9 million EUR, provides for the delivery of one silo complex. The second, worth 26 million EUR, concerns the delivery of two silo complexes. Both contracts will be finalized by November 30 next year. Deliveries will be made in western Ukraine.

The signing of subsequent contracts with EPICENTR K LLC is very good information for the Company. After three quarters of this year we achieved record financial results in FEERUM history, a significant part of them was derived from the implementation of Ukrainian contracts. Further contracts significantly strengthen our order backlog. We are very pleased with KUKE’s decision to insure concluded contracts” – said FEERUM president Daniel Janusz.

Obtaining the KUKE insurance policy will allow the awarding entity “Supplier credit”. The condition of selling on many markets, including eastern ones, is offering the product along with its financing. Thanks to the cooperation with KUKE – which declared contract insurance in a 5-year loan – it is possible to finance it by a financial institution selected by FEERUM.

FEERUM, as part of its contractual obligations, will design, manufacture and deliver silos to designated locations in Ukraine, as well as provide warranty service and training of the client’s employees. The company will not be responsible for the assembly and commissioning of the delivered silos.

Date of publication: 23.12.2019