A member of the World Bank Group, IFC is set to invest $25 million in a Ukrainian pork producer, Nyva Pereyaslavshchyny to support its expansion plans, helping create jobs, reduce imports, and boost sustainable agriculture.
Providing Nyva with a long term debt financing, the investment is supporting a three year investment program which includes: construction of pig farms, expanded storage and meat processing. Ukraine’s pork market is growing and under supplied and additionally this investment will create jobs in rural areas as well as in central Ukraine. Ukraine also imports nearly a quarter of its annual consumption.
|According to Oleksander Mostipan, Chairman of Nyva’s group of companies:
“IFC’s long-term financing will help us stabilize our funding sources at a time when even short-term lending from Ukrainian banks is scarce. This partnership will also help us further improve operational efficiencies and increase production to address the domestic pork shortage.”
The investment will help Nyva nearly double its pork production to over 40000 tons in the next four years.
Dimitris Tsitsiragos, IFC Vice President for Global Client Services also added the following:
“Agribusiness is a priority for IFC globally and Ukraine is central to IFC’s strategy in this sector. Unleashing the potential of Ukraine’s agribusiness sector will increase exports, boost the economy, and enable Ukraine to play a more significant role in global food security. IFC is today one of the leading foreign investors in Ukraine’s agribusiness, committing about $1 billion across the value chain.”
IFC also intends to provide strategic advice in agribusiness, working with both governments and private sectors in Ukraine to streamline the business regulations, expand access to financing to farmers, open new markets and modernize supply chains.
A sister organization of the World Bank, IFC is the largest global development institution focused on the private sector in emerging markets. IFC works with more than 2000 businesses worldwide and it delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity.