Kiev, Ukraine, June 17, 2010
—IFC, a member of the World Bank Group, is providing leading Ukrainian poultry producer Myronivsky Hliboproduct with $61.25 million in financing to help the company expand its grain-farming and poultry operations and create thousands of jobs in rural Central Ukraine.
In its third transaction with Myronivsky Hliboproduct, IFC will provide a $50 million loan to support the company’s plans to expand in the Vinnytsa region. The company expects to increase its workforce by around 7,000 from its current 20,580 following the planned investment program. IFC also will provide up to $11.25 million through an innovative financing mechanism—the first partial credit guarantee by IFC in the Ukrainian leasing market.
“We are happy to have a long-standing relationship with IFC which continues to strengthen and expand our company,” said Yuriy Kosyuk, Chief Executive Officer of Myronivsky Hliboproduct. “This latest transaction will enable us to continue implementing our strategy of vertical integration
by expanding our operations to deliver high-quality products on the domestic market.”
Rashad Kaldany, IFC Vice President for Asia, Eastern Europe, Middle East and North Africa, said, “Agribusiness is a priority sector for IFC in Ukraine and the Europe and Central Asia region. By working with strong partners such as Myronivsky Hliboproduct we aim to support the development of this sector, which has tremendous potential to serve domestic and global markets while creating jobs and boosting growth.”
IFC’s partial credit guarantee is a new financial product for the Ukrainian market and will help enhance companies’ risk-management capacity in the current challenging economic environment. IFC worked with a Ukrainian subsidiary of ING Lease, a top international leasing firm, to develop the financial product that will enable long-term investment in agricultural equipment and machinery. IFC’s guarantee will be provided to ING Lease Ukraine for agricultural machinery leased by Myronivsky Hliboproduct.
Both IFC and ING Lease are committed to expanding the guarantee program to facilitate credit availability and sufficient tenors for financing.
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
.
