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Kiev, Ukraine, June 3, 2010
—IFC, a member of the World Bank Group, will increase its investment to Ukraine’s leading agricultural producer Mriya to help it double its grain production, cultivate more agricultural land and strengthen the country’s agricultural sector, a key engine for sustained economic development.
IFC will provide a three-year $35 million loan to Mriya, which operates mainly in the Ternopil, Ivano-Frankivsk, Chernivtsi and Khmelnitsky regions in the west, which are among the poorest in Ukraine.
“This is IFC’s second investment in our company in the last two years,” said Mykola Guta, CEO of Mriya. “Our results have secured us a higher level of investor confidence in the company and we plan to use the funds to improve grain storage infrastructure and expand grain production.”
The new investment in Mriya will increase the amount of working capital provided by IFC to the company by $10 million and also will extend the availability of the financing by one year. In 2010 IFC provided the company with a financial package comprising a $25 million renewable working capital facility, a $25 million loan for capital expenditure, and an option to buy warrants of up to $25 million.
IFC’s investments will help the company expand land under cultivation from 240,000 hectares to around 441,000 hectares by 2014. Mriya’s additional investment in grain storage infrastructure will improve the efficiency of agricultural logistics in the country. Expanding production and grain-storage infrastructure also will help create new rural jobs.
“IFC's financing into Mriya will contribute to the development of a large-scale modern farming operation that will improve land productivity and have a demonstration impact on other neighboring farms in Ukraine. Supporting increased production of food through sustainable use of resources is a key element of IFC’s strategy to improve food security in the region and around the world,” said Rufat Alimardanov, IFC’s Country Manager for Ukraine and Belarus.
IFC is committed to helping Ukraine maximize its agribusiness potential and has so far invested nearly $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 development of the agro-insurance market in Ukraine, improving food safety standards and developing supply chains for fruits and vegetables.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information, visit
www.ifc.org
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About Mriya
Mriya was founded in 1992. The company applies best agricultural practices and has a proven track record of growing wheat, barley, sugar beet, rapeseed, potatoes, and other crops. Mriya carries out agricultural activities on 240,000 hectares of land in western Ukraine spread across Ternopil, Khmelnytsky, Chernivtsy, and Ivano-Frankivsk. For more information, visit
http://www.mriya.ua/ua/
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