Kiev, December 1, 2003 –
The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, signed an agreement today to provide a $30 million loan to CJSC Myronivsky Khliboprodukt, a leading vertically integrated poultry producer in Ukraine. IFC’s loan will support the company’s expansion and modernization plans to improve efficiency, increase production capacity, and strengthen its distribution network.
Under the $119 million investment project, the company will expand its integrated poultry production facilities, including breeding and broiler farms, hatcheries, and processing plants, and will construct a new feedmill.
IFC’s loan to Myronivsky will help satisfy the rapidly growing demand for fresh chicken products and provide the Ukrainian consumers with high quality meat at affordable prices. The project will create employment opportunities for small private entrepreneurs through establishment of around 900 independently owned retail franchise outlets. The company will pilot new feedmill technology for poultry feed production, the first of its kind in Ukraine.
“This is the first IFC investment to a local agribusiness producer in Ukraine. We are glad to work with a solid company with good business approach and willing to improve transparency and corporate governance,” said Edward Nassim, IFC’s Director of the Central and Eastern Europe Department. “IFC hopes that the loan we have provided to Myronivsky will serve as an example for other leading Ukrainian companies with which we intend to build long-term partnerships through investments and technical assistance.”
Italian and Swedish trust funds were mobilized to help the company with the implementation of a Food Safety and Quality Management System and with the establishment of new MIS and well functioning finance and accounting departments.
The International Finance Corporation is a member of the World Bank Group. IFC’s mission is to promote sustainable private sector investment in transition economies, helping to reduce poverty and improve people's lives. IFC finances private sector investments in the emerging markets, mobilizes capital in the international financial markets,
helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY03, IFC has committed more than $37 billion of its own funds and arranged $22 billion in syndications for 2,990 companies in 140 developing countries. IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its own account and $6.6 billion held for participants in loan syndications.