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IFC Investment in Agricultural Producer Mriya Helps Increase Grain Production in Ukraine


In Washington, D.C.:
Irina Likhacheva

Phone:  (202) 473-0605

E-mail:
ilikhachova@ifc.org

In Kiev:

Olena Harmash

Phone: +380 (44) 490 64 00
E-mail:
oharmash@ifc.org


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 rural jobs.


“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.


About IFC


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.

About Mriya

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, visit
www.dragon-capital.com.