Pilot issuance of agrarian note took place for the first time in Ukraine

For the first time in Ukraine, the Agrarian Note Register piloted the issuance of an agricultural note deposited with the Central Depository. This is a landmark event for the introduction of this financial instrument in the capital markets.

The first agrarian note was issued by LLC AGROFIRMA-OBRIY from Khmelnytsky region, and its first holder was LLC AP IMPORT of the Agroprosperis Group as a creditor. The creditor’s securities account is maintained by Raiffeisen Bank, a depository institution.

‘The launch of agricultural notes is an important milestone for the development and digitalisation of capital markets. We have made every effort to create a transparent and efficient system for the circulation of this instrument. The first issue confirmed the market’s readiness for changes, but also outlined aspects that need to be finalised for the full functionality of the instrument,’ said Ruslan Magomedov, Chairman of the NSSMC.

The process was supported by PJSC “National Depository of Ukraine” (NDU), which serves as the custodian of the Register of Agri Notes, as well as by the expert team of IFC within the framework of the “Development of Access to Capital Markets for Ukraine’s Agricultural Sector” project, implemented in partnership with the Swiss Confederation.

For reference:

An agricultural note is a non-issue security that exists in electronic form in the form of an account in the depository system and is recorded in the Agricultural Note Register. This instrument enables agricultural producers to raise financing secured by future agricultural products, contributing to the development of capital markets in the agricultural sector.

The Agricultural Notes Register is maintained by PJSC National Depository of Ukraine, which ensures reliable accounting of all issued agricultural notes. It allows transactions with agricultural notes to be conducted both on the organised and non-organised capital markets and facilitates the attraction of investors to the agricultural sector.