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Kyiv, Ukraine, July 9, 2020
—IFC, a member of the World Bank Group, today announced a loan of up to $20 million to Nyva Pereyaslavshchyny, a
leading Ukrainian agricultural producer, to finance its working capital in an effort to limit potential input supply chain disruptions in meat production due to the COVID-19 pandemic, thereby supporting
domestic food security.
Nyva Pereyaslavshchyny, an IFC client since 2015, is significantly increasing its raw material inventory, such as feed components and fertilizers, many of which are imported, in order to avoid production disruptions. IFC’s financing will enable these purchases, ensuring critical financial support in a time of crisis and when other sources of liquidity are limited.
Oleksandr Mostipan, the founder of Nyva Pereyaslavshchyny, said: “The COVID-19 pandemic and the economic downturn nearly halted growth in the private sector, and Nyva Pereyaslavshchyny would not have been an exception. Investing and business development in such circumstances are extremely challenging. However, due to an immediate response and the financial support from our long-standing partner IFC, we are able to proceed with our investment projects. We can expand, and ensure job security, remaining stable in these turbulent times.”
The COVID-19 pandemic has severely impacted countries across the Europe and Central Asia region, including Ukraine. Global commodity prices have collapsed, and global and regional supply chains are disrupted, leading to heightened risk aversion in financial markets worldwide. According to the
World Bank Group’s Global Economic Prospects, June 2020
, economic activity is expected to contract in Ukraine by 3.5 percent.
Jason Pellmar, IFC Regional Manager for Ukraine, Belarus, and Moldova, said: “We want to ensure that companies can stay in business and continue paying their workers amid this unprecedented crisis, while ensuring uninterrupted supply of food products to consumers. Our financing will help our client Nyva to continue its operations and
play its role in ensuring Ukraine’s food security.”
IFC’s loan to Nyva
Pereyaslavshchyny
is a key component of its $8 billion global fast-track financing package, announced in March, to support business activity and preserve jobs in the face of COVID-19. Globally, close to 300 clients have requested support.
The project is core to IFC’s strategy aiming to unleash the potential of Ukraine’s agribusiness sector and enable the country to play a more significant role in food security.
Since 2004, IFC has committed over $3.3 billion—of which $1.1 billion was mobilized from partners—in long-term financing in Ukraine across a diversified portfolio of projects and implemented a wide-ranging advisory program. In addition, we have supported more than $1.2 billion of trade through IFC’s Global Trade Finance program.
About IFC
IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2019, we invested more than $19 billion in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit
www.ifc.org
.
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About Nyva Pereyaslavshchyny
The company is the second largest market player in the Ukrainian industrial pork market
.
For more information, visit
www.niva-group.com
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