European Bank Backs Ukrainian Agribusiness Group05 December 2013
UKRAINE - The European Bank for Reconstruction and Development (EBRD) is backing a development and expansion plan at Ukrainian agribusiness group, MHP.
EBRD is providing a new debt facility for a leading Ukrainian agribusiness producer, PJSC Myronivsky Hliboproduct (MHP), thus bringing its total financing programme to the company to $100 million. The funding will be used to refinance EBRD’s existing loan and to support the expansion and diversification of the group’s farming activities.
MHP Group, established in 1998, is a major vertically integrated grain/feed and poultry meat producer in Ukraine, which has focused on the steady growth of its operations for the past 15 years. The group is now planning to develop its upstream grain production activity both in Ukraine and Russia. Part of the EBRD funding will be invested in new equipment, which will allow for increased cost and resource efficiency.
The experience and knowledge gained by MHP in Ukraine would be transferred to newly acquired subsidiary Voronezh Agro, an agricultural group located in Voronezh Region in central Russia. Voronezh Agro has a land bank of 40,000 hectares, most of which is owned by the company, and operates grain silos with total storage capacity of 200,000 m3.
Sevki Acuner, EBRD Director, Ukraine, said: “This loan is an expression of our support for a strong local market player which has the potential to grow beyond its borders. Our financing is also a testimony to the EBRD’s continuing commitment to Ukraine and strong private enterprises, which through their activities contribute to unlocking the country’s potential.”
Gilles Mettetal, EBRD Director, Agribusiness, added: “We are pleased to support MHP Group because we are impressed by its development and progress since we started cooperation in 2010.”
In the agribusiness sector alone, the EBRD has directly committed more than €6 billion in over 400 projects across central and eastern Europe and the Commonwealth of Independent States since 1991.
The EBRD is the largest financial investor in Ukraine. As of 1 September 2013 the Bank had committed more than €8.6 billion (US$11.6 billion), through 327 projects, in Ukraine.
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