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Mykolayiv, Ukraine, September 21, 2005
—The International Finance Corporation (IFC), the private sector financing arm of the World Bank Group, provided a $10 million loan to Sandora Ltd., the number one producer of branded packed juices and nectars in Ukraine. IFC’s financing will support the company’s expansion strategy in the production of juices and drinks.
This is IFC’s second loan to Sandora. IFC provided a first loan of $10 million in June 2004 to help the company strengthen its market position by improving product quality, strengthening its local supply base, and broadening its reach to Ukrainian consumers. Today, Sandora has a dominant share in the Ukrainian packaged juice and nectar market and exports its products to Azerbaijan, Belarus, Kazakhstan, Moldova and other countries.
In addition to financing, IFC has been providing technical assistance to the company in implementing HACCP food safety system and improving its supply chain. The technical assistance is funded by donor governments of Germany and Sweden.
“The agricultural sector is vital to Ukraine’s economic development. Sandora’s success has set a positive example for other producers in the sector and created jobs for Ukrainian farmers," said Elena Voloshisna, Head of IFC Operations in Ukraine.
Jean-Paul Pinard, IFC’s Director of the Agribusiness Department said, “IFC’s strategy is to support local market leaders in Ukraine’s agribusiness, which follow international practices in environmental, occupation and health management aspects of their operations and set a high standard for the entire industry, promoting competition and growth. IFC is pleased to provide additional financial support to Sandora, which will help the company expand its product offering to Ukrainian consumers.”
“IFC’s second loan to Sandora demonstrates a strong foreign investor interest in the Ukrainian agribusiness sector and concrete support for its development” commented Serhiy Sypko, Director, Sandora Ltd.
Sandora Limited Liability Company is the leading manufacturer of branded packaged juices and nectars in Ukraine. Located in Southern Ukraine, Sandora produces a wide range of natural juices and nectars from locally grown fruits and vegetables and imported concentrated juices under several well-established brands. Sandora’s owners and management have capitalized on opportunities offered by economic growth and increasing consumer nutritional awareness. They have transformed the company from a small regional player into a leading national branded juice producer.
The International Finance Corporation (IFC), the private sector arm of the World Bank Group, promotes sustainable private sector investment in developing and transition countries, helping to reduce poverty and improve people’s lives. IFC finances private sector investments, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. Its 178 member countries provide its share capital and collectively determine its policies.
From its founding in 1956 through FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit www.ifc.org.
Ukraine became a shareholder and a member of IFC in 1993. As of September 1, 2005, IFC has invested around $470 million in 22 projects. IFC expanded its investment program in Ukraine significantly in 2004-2005, committing $255 million in the agribusiness, financial, and general manufacturing sectors. IFC has also been conducting an extensive advisory program since 1992, which initially focused on the privatization of small businesses, land, and idle construction sites. Current donor-funded programs offer advice on corporate governance, leasing, and agribusiness. Programs also seek to improve the business environment and promote the growth of small and medium enterprises.
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