Kiev, Ukraine, Dec 11, 2012
—IFC, a member of the World Bank Group, has provided a $16 million loan to Agrofusion, Ukraine’s largest industrial tomato producer, to support the development of food production in the rural south, helping promote sustainable agriculture and contributing to the country’s economic recovery.
IFC’s debt financing will help strengthen the company’s position in domestic and export tomato paste markets, contribute to food security, and promote best farming practices among other vegetable producers in Ukraine. The country has fertile soils and favorable weather conditions but outdated farming practices and limited access to finance prevent local producers from being able to raise food production significantly.
“IFC’s loan will help us secure more stable financing in these challenging times,” said Ivan Sakal, Agrofusion’s Chief Financial Officer. “We are committed to producing high-quality products, using modern and resource efficient practices and count on this partnership with IFC to further improve our position in the domestic market and expand exports.”
Agrofusion, located in the Kherson and Mykolayiv regions in the south, is the only Ukrainian company that has established industrial production of tomatoes with yields that are comparable to those of the leading world producers.
“Food security is a global priority and Ukraine could play an important role in that,” said Rufat Alimardanov, IFC’s Regional Manager for Ukraine and Belarus. “Working with local producers, we aim to help increase productivity and enhance efficiency. Agrofusion is a good example on how we can help promote better farming practices among other vegetable producers in Ukraine and strengthen rural development in the south.”
In Ukraine, IFC supports the entire agribusiness sector, from farming, to processing, to distribution. IFC also offers advisory programs in Ukraine on simplifying business regulations for the sector, expanding access to finance for farmers, encouraging bank lending, and developing the agri-insurance market. IFC also works to enhance the competitiveness of local players by supporting improvements in food safety management and resource efficiency.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, mobilizing capital in international financial markets, and providing advisory services to businesses and governments. In FY12, our investments reached an all-time high of more than $20 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
.
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