IFC Helps MHP Expand, Create Jobs07 February 2013
UKRAINE - IFC, a member of the World Bank Group, is providing long-term debt financing to Ukraine’s leading poultry producer Myronivsky Hliboproduct (MHP) to help the company expand its operations at home and beyond, creating hundreds of new jobs and contributing to global food security.
In its fourth transaction with the company, IFC is providing a $50 million loan to support MHP in implementing its expansion program in the central Ukraine region of Vinnytsia.
The new plant will have a production capacity of 440,000 tons of poultry a year to supply Ukraine and export markets.
Yuriy Kosyuk, Chief Executive Officer of MHP, said, "IFC has supported us through all stages of the development. It has been a true partnership. Our new deal will enable the company to go to the next level, continue to improve, innovate, expand and contribute to Ukraine’s sustained economic development."
The poultry producer plans to increase its staff by 6,000 to around 32,800 during the next five years. The network of small and medium businesses and individual franchises that sells the company’s products is also expected to expand.
Most of these businesses operate in small towns in Ukraine’s rural areas.
Rufat Alimardanov, IFC’s Regional Head for Ukraine and Belarus, said, "Supporting Ukraine’s agribusiness sector throughout the value chain is a core part of our strategy in the country. We help Ukraine capitalize on its competitive advantages, including a fertile soil and strong agricultural tradition, and contribute to global food security. This investment in MHP is a good example of how we can support increasing sustainable food production by providing long-term financing and advisory support."
IFC is also working with the company to help improve resource efficiency in its operations and implement GLOBAL G.A.P., an internationally recognized standard for safe and sustainable agriculture. This will set an example for other agricultural producers in Ukraine and in the region.
In agribusiness, IFC supports the entire value chain, from farming to processing and distribution. IFC also offers extensive advisory programs in Ukraine, helping simplify business regulations in the sector, expanding access to finance for farmers and developing the agri-insurance market.