Kiev, Ukraine, June 24, 2014—IFC,
a member of the World Bank Group, is providing up to $250 million in debt
financing to expand leading poultry producer Myronivsky Hliboproduct (MHP),
which employs over 30,000 people, and to develop Ukraine’s agribusiness
sector, a key driver for the economy.
The financing package is IFC’s largest
investment in Ukraine since 2008. It includes $100 million in debt
from IFC’s own account and $75 million through the IFC Managed Co-Lending
Portfolio Program, a new syndications platform that offers institutional
investors the ability to passively participate in IFC’s future senior
loan portfolio. Additionally, up to $75 million is being raised from other
lenders as syndicated loans.
“IFC’s funding will help us continue
our expansion program despite the challenging economic environment in Ukraine,”
said Yuri Kosyuk, MHP founder and chief executive officer. “We consider
IFC a long-term partner, since the early 2000s. With IFC’s support we
will continue to build our regional and global competiveness.”
Rufat Alimardanov, IFC Regional Head
for Ukraine and Belarus, said: “We are stepping up our efforts to support
Ukrainian companies and help the country realize its competitive advantages
and return to economic growth. This financing for MHP is our largest investment
in Ukraine’s agribusiness sector.”
Supporting agribusiness along the value
chain is a cornerstone of IFC’s strategy in Ukraine. The agriculture sector
represents over 40 percent of IFC’s current investment portfolio in the
country. IFC is also implementing a large advisory program in the sector,
helping simplify business regulations, modernize supply chains, improve
competiveness, and expand access to finance.
IFC first invested in MHP back in 2003.
Since then the company has grown into one of the largest poultry producers
in Eastern Europe. It controls about half of the chicken market in Ukraine,
a country of 46 million people. MHP sells about 40 percent of its products
in Ukraine through a network of small and medium businesses and franchises,
supporting economic activity across the country.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. Working with private enterprises in more than 100 countries,
we use our capital, expertise, and influence to help eliminate extreme
poverty and promote shared prosperity. In FY13, our investments climbed
to an all-time high of nearly $25 billion, leveraging the power of the
private sector to create jobs and tackle the world’s most pressing development
challenges. For more information, visit www.ifc.org.
MHP is a vertically-integrated company
and the leading poultry producer in Ukraine. The group grows its own grain
to supply its fodder mills and produces feed for its two breeder farms
and five chicken farms. MHP undertakes the entire production cycle, from
chicks to mature birds to finished product, and distributes its products
with its own fleet of trucks. For more information, visit http://www.mhp.com.ua/.