Agroprosperis took part in Ukraine’s first issuance of an agrarian note

On March 6, 2025, Ukraine successfully conducted the pilot issuance of its first agrarian note, marking a significant step in implementing this financial instrument. The event demonstrated the readiness of market participants to fully utilize agrarian notes.

 

An agrarian note is a non-issuance security that exists in electronic form as a book-entry in the depository system and is recorded in the Agrarian Notes Registry. This instrument enables agricultural producers to attract financing secured by future agricultural production, contributing to the development of capital markets in the agricultural sector.

 

The first agrarian note was issued by Agrofirma-Obriy LLC from Khmelnytskyi region, while its first holder was AP Import LLC, part of Agroprosperis Group, acting as the creditor. The implementation of this new financial instrument became possible thanks to Agroprosperis’ experience of over 10 years in the market of innovative solutions for farmers, including the continued work of Agroprosperis Bank in financing agrarian receipts. The creditor's securities account is serviced by Raiffeisen Bank Ukraine, a depository institution.

 

"The agrarian note allows us to quickly secure the necessary financing. The electronic format significantly simplifies the documentation process and saves valuable time for farmers, especially during peak fieldwork periods," said Oleh Grom, General Director, Agrofirma-Obriy LLC.

 

"For us as a creditor, this instrument provides a new level of engagement with agricultural producers. It is crucial that the system remains intuitive not only for bankers but also for farmers," said Volodymyr Khochai, Director, AP Import.

 

The pilot issuance of the agrarian note took place in the Agrarian Notes Registry with depository settlement in the Central Depository, involving real market participants: a creditor and a debtor who completed all necessary registration and documentation steps. The process was supported by the National Depository of Ukraine (NDU), which operates the Agrarian Notes Registry, as well as the expert team of the IFC project “Developing Access to Capital Markets for Ukraine’s Agribusiness,” implemented in partnership with the Swiss Confederation.

 

"This is an important step forward in creating a modern financial infrastructure for Ukraine's agricultural sector. We see strong market support and the readiness of participants to leverage the opportunities of this new digital instrument. IFC, in partnership with Switzerland, will continue supporting the full-scale implementation of agrarian notes," said Olena Voloshina, IFC Senior Country Officer for Ukraine.

 

"The launch of agrarian notes is a key milestone in the development and digitalization of capital markets. We have made every effort to create a transparent and efficient system for their circulation. The first issuance confirmed the market's willingness to adopt changes while also outlining aspects that need further refinement to ensure the full functionality of the instrument," commented Ruslan Magomedov, Chairman of the National Securities and Stock Market Commission (NSSMC).

 

The Agrarian Notes Registry is maintained by the National Depository of Ukraine (NDU), ensuring the secure record-keeping of all issued agrarian notes. The system enables transactions on both organized and over-the-counter capital markets, contributing to increased investor engagement in the agricultural sector.

 

"NDU ensures the centralized record-keeping of agrarian notes within the Agrarian Notes Registry and the depository system, guaranteeing their reliability and transparency. We actively listen to pilot participants and are committed to refining the system based on their feedback. Special attention is being given to process automation and minimizing human factors to make working with agrarian notes as simple and secure as possible," stated Oleksii Yudin, NDU’s Chairman of the Board.

 

"We are pleased to be part of the implementation of agrarian notes in Ukraine. As a depository institution, we ensure the reliable record-keeping of creditor rights to agrarian notes and facilitate transactions with them," commented Bohdana Yefremova, Head of the Depository Activities Department at Raiffeisen Bank Ukraine.

 

The introduction of agrarian notes marks a new era in agricultural financing. The digitalization of this process through the Agrarian Notes Registry is expected to enhance market trust, attract investment, and strengthen Ukraine's economic stability. Collaboration among all involved stakeholders—government authorities, registry operators, financial institutions, and agricultural producers—is a key factor in the successful implementation of this new market instrument.