Kyiv, Ukraine, May 31, 2005 —
The International Finance Corporation (IFC), the private sector financing
arm of the World Bank Group, provided $20 million in equity and a $60 million
loan to Mironovsky Khliboproduct, Ukraine’s leading producer of fresh
poultry under the brand of Nasha Ryaba. IFC’s financing will support the
company’s strategy of doubling its production capacity by 2008 and expanding
into a new market of partially processed and cooked poultry products.
This is IFC’s largest investment in Ukraine to date and a second project
with Mironovsky. IFC’s first loan of $30 million in 2003 enabled Mironovsky
to expand, modernize, and improve the efficiency of its production as well
as strengthen its distribution network by creating 900 franchise retail
outlets. The company built a plant for production of sunflower-based poultry
feed, the first of its kind in the world. This new technology has allowed
Mironovsky to lower the cost of feed and become one of the world’s lowest-cost
producers of poultry. Mironovsky was among the first food companies in
Ukraine to develop a chilled distribution system to deliver fresh products
to retail outlets, which allowed the company to compete with imports of
frozen poultry. Low-cost and high-quality products vaulted Mironovsky into
a leading position in Ukraine’s market for fresh poultry, with a 20 percent
The demand for Mironovsky’s well-recognized
brand, Nasha Ryaba, is growing fast. To keep up with this demand the company
is now working to double its production within three years and develop
new partially processed and cooked products. The total project cost is
estimated at $260 million, of which IFC is providing $80 million.
Jean-Paul Pinard, IFC’s director for agribusiness,
said: “IFC' investment in Mironovsky marks an important step in our strategy
to step up our activities in Ukraine’s growing agribusiness sector. It
will support the company's efforts to maintain its market leadership by
expanding its operations in line with market developments while strengthening
its management systems in terms of food safety and corporate governance.”
Yuriy Kosyuk, chairman of the board of Mironovsky,
said, “IFC has proven to be an understanding, flexible, and reliable partner
for us. Not only does it provide financing on competitive terms, but it
also has a wealth of technical, industry, corporate governance, and financial
structuring expertise, all of which have helped us improve our company.
As a result of our joint work over the past two years, Mironovsky has become
a better corporate, and we are now able to access financing on more favorable
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.
Ukraine became a member of IFC in 1993. To date, IFC has invested $233
million across 16 projects in the country. IFC has significantly
expanded its investment program in Ukraine in fiscal 2004, committing $72
million in the agribusiness, financial, and general manufacturing sectors.
IFC has also been conducting an extensive advisory program in Ukraine since
1992. Current donor-funded programs offer advice on corporate governance
to companies and banks, seek to improve the business environment, and promote
leasing, development of the agribusiness sector, and the growth of small
and medium enterprises.