Kiev, Ukraine, June 18, 2010—IFC,
a member of the World Bank Group, is investing in Ukraine’s leading agricultural
producer Mriya to help the company double its grain production, cultivate
more agricultural land, generate employment, and strengthen the country’s
agricultural sector, a vital engine for sustained economic development.
IFC’s financing package will consist of a $25 million renewable working
capital facility, a $25 million loan for capital expenditure, and warrants
of up to $25 million. The funds will be used to build three grain silos,
purchase new farm machinery, acquire land lease rights, and produce grain
for sale to local clients and international traders.
“IFC’s funding is crucial for us to be able to grow our business, improve
the efficiency of our operations, and contribute to the development of
Ukraine’s agricultural sector,” said Mykola Guta, CEO of Mriya, after
signing the loan agreement.
The investment will help the company increase its production volumes two
to three fold and expand land under cultivation from 150,000 hectares in
2009 to 315,000 hectares by 2012. The expansion of farming operations
and grain-storage infrastructure also will help create hundreds of new
“By supporting Mriya, IFC will be helping Ukraine capitalize on its potential
to increase grain production for domestic and international markets and
expand economic opportunities for the country’s rural population,” said
Oscar Chemerinski, IFC Director for Global Agribusiness. “Supporting
increased production of food through sustainable use of resources is a
key element of IFC’s strategy to improve global food security.”
In agribusiness, IFC supports the entire value chain, from farm production
to collection, processing, and distribution. It has invested around
$350 million in various projects so far in Ukraine’s agricultural sector.
IFC also offers an extensive advisory program, including projects focusing
on development of the agricultural insurance market in Ukraine, improving
food safety standards, and developing supply chains for fruit and vegetables.
Dragon Capital, a leading Ukrainian investment bank, acted as sole financial
adviser to Mriya on the transaction.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing capital for private enterprise, and providing advisory and risk
mitigation services to businesses and governments. Our new investments
totaled $14.5 billion in fiscal 2009, helping channel capital into developing
countries during the financial crisis. For more information, visit www.ifc.org.
Mriya was founded in 1992 as a small farm with around 50 hectares of land.
The company is now Ukraine’s seventh-largest primary agricultural producer
with a proven track record of growing wheat, barley, sugar beet, rapeseed,
potatoes, and other crops. Mriya’s operations are concentrated in the
Ternopil, Khmelnytsky, Chernivtsy, and Ivano-Frankivsk regions of Western
Ukraine. For more information, visit www.mriya.ua/ua.
About Dragon Capital
Dragon Capital is Ukraine's leading investment banking, securities brokerage,
private equity and asset management firm offering a comprehensive range
of services to institutional, corporate and private clients. For more information,