Kiev, Ukraine, April 3, 2012
—IFC, a member of the World Bank Group, is partnering with Credit Agricole and Bayer to make high-quality crop protection products more affordable for independent farmers and smaller agricultural companies, helping Ukraine boost its agricultural productivity.
IFC and Credit Agricole’s subsidiary in Ukraine have developed a risk-sharing facility that will enable farmers to buy crop protection products - including pesticides and herbicides - on credit from industry leader Bayer. The purchases will be paid in full once the year’s crops are sold. The risk sharing facility will cover up to $35 million of seasonal payment obligations to Bayer, half of which IFC will guarantee.
“Credit Agricole in Ukraine focuses on financing agriculture,” said Larisa Bondarieva, Credit Agricole’s Director for Corporate Business. “Our task is to provide farmers with relevant financial tools to meet the specific needs of their businesses. Our agreement with IFC is a key step towards strengthening cooperation with agricultural companies, which will contribute to increasing the productivity and profitability of agricultural businesses.”
Rufat Alimardanov, IFC’s Country Manager for Ukraine and Belarus, said, “Adding a new bank to our joint financing program will help Bayer increase awareness among farmers about financial options at a time when access to finance for Ukrainian farmers remains challenging. More access to crop protection products will also result in higher crop productivity, a key for global food security.”
Last year IFC partnered with Bayer and Raiffeisen Bank Aval to develop a risk-sharing facility to cover up to $140 million of seasonal payment obligations to Bayer, of which IFC pledged to guarantee up to half. Crop protection products are key components for growing healthy crops and increasing yields. However, because they are used later in the growing season, farmers often have little money and are forced to settle for lower quality products. This results in lower yields and may have an adverse impact on the environment.
IFC is committed to helping Ukraine maximize its agribusiness potential and has so far invested over $500 million in the country’s farming sector. In agribusiness, IFC supports the entire value chain, from farm production to collection, processing and distribution. It also offers an extensive advisory program, including projects focused on improving food safety standards, maximizing resource efficiency and developing the agri-finance and agro-insurance market in Ukraine.
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, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit
About Credit Agricole