Kiev, Ukraine, November 12, 2012—IFC,
a member of the World Bank Group, is providing up to $40 million in debt
financing to Ukraine’s leading agricultural producer, Astarta, to help
the company expand and diversify, which will contribute to global food
security and create thousands of new jobs in Ukraine.
IFC’s investment will support Astarta
in its plans to increase production capacity of grains and oil seeds, diversify
its operations through the construction of a soybean-crushing facility,
and continue improving efficiency in sugar production. Employing about
14,000 people in small towns and villages in central Ukraine, Astarta plans
to add 3,400 new jobs in rural areas in the next four years.
“Our long-term strategy is focused
on increasing production efficiency, energy savings, and business diversification,”
said Viktor Ivanchyk, Astarta’s CEO. “We are aiming for
sustainable growth, and IFC’s financing and expertise will
help us continue to improve our performance and learn from the world’s
best practices in agriculture.”
Rufat Alimardanov, IFC Country Manager
for Ukraine and Belarus, said, “Astarta is at the forefront of Ukrainian
agribusiness in many areas, including transparency and production efficiency.
IFC helps Ukraine improve agribusiness efficiency to enable the country
to increase exports of key agricultural commodities and contribute to global
Ukraine accounts for about 10 percent
of global grain exports, and Astarta supplies grain to Asia, North Africa,
and the Middle East. About a third of IFC’s current portfolio in Ukraine
is invested in the agribusiness sector.
IFC supports the entire value chain
in agribusiness, from farm production to collection, processing, and distribution.
IFC also offers advisory programs in Ukraine on simplifying business regulations
for agribusiness, expanding access to finance for farmers, encouraging
commercial bank lending to the sector, and developing the agri-insurance
market. IFC also works to enhance the competitiveness of local players
by supporting improvement in food safety management and resource efficiency.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.
Founded in 1993, Astarta is a vertically
integrated agro-industrial holding specializing in sugar and agricultural
production. The agricultural business focuses primarily on the cultivation
of sugar beet, grains and oilseeds, the production of high quality white
sugar and related products, and milk and meat production. For more information,