St. Petersburg, Russia, June 17, 2011
—IFC, a member of the World Bank Group, today signed an agreement in St. Petersburg to invest EUR16.8 million in equity in Idavang A.S., a Danish holding company with pig and crop farms in Russia and Lithuania. The investment will help the company expand its operations in the Pskov and Leningrad regions of Russia.
“This IFC investment is a sign of confidence in our company and of the potential of agribusiness production in Russia,” said Ole Bjerremand Hansen, the main shareholder of Idavang. “Upon completion of our long-term investment program, our production will not only reach a significant scale in the local market, but will also meet Russian and international standards of energy efficiency and clean production practices.”
The project is being developed in accordance with Russian regulatory requirements and European Standards. It will result in a vertically integrated farm production from initial crop generation through final animal delivery to slaughtering facilities.
“Food security is a growing development challenge—and Russia and IFC are important partners in the global effort to address it,” said Lars Thunell, IFC Executive Vice President and CEO. “Russia, with its vast agricultural land, relatively cheap grain, and favorable climate, has the potential to become an internationally competitive pork producer. IFC can help companies adopt effective and sustainable practices throughout the agribusiness value chain.”
Agribusiness is a strategic priority sector for IFC. Over the last few years IFC has quadrupled its investment program across the full agribusiness value chain, to $2 billion annually. To address the food crisis and volatile food prices, IFC supports improved access to key agricultural inputs to boost production, develops and introduces risk management tools to help mitigate price- and weather-related shocks, supports small and medium enterprises through agricultural and financial intermediaries, and invests in agricultural logistics and infrastructure to reduce post-harvest losses and waste.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit
www.ifc.org
.
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