Kyiv, Ukraine, October 7, 2015— IFC, a member of the World Bank Group,
is partnering with Raiffeisen Bank Aval and Bayer to make high-quality
crop protection products more affordable for small and medium agricultural
companies and farmers, helping Ukraine boost agricultural productivity.
IFC and Raiffeisen Bank Aval are launching a new risk-sharing facility
that will enable farmers to buy crop protection products on credit from
industry leader Bayer, with the purchases to be paid in full once the year’s
crops are sold. It will cover up to $60 million of seasonal payment obligations
to Bayer, of which IFC will guarantee up to half the value.
“Our new project will continue to improve access to affordable funding
for agribusiness, despite the challenging macroeconomic conditions in Ukraine,”
said Volodymyr Lavrenchuk, CEO of Raiffeisen Bank Aval. “Since
lending is still quite expensive for agrarians, our bank is paying special
attention to affiliate programs that offer financing at subsidy interest
“Given the challenging economic conditions, most SMEs in Ukraine are facing
financial constraints and unable to obtain the funds they need to buy crop
protection products and seeds. Our joint project will provide the support
farmers need to do this and help them maximize quality crop yields,” said
Andreas Loechel, Head of Bayer Crop Science in Northern Black Sea Countries.
The financing is supported by a nationwide program delivered by IFC’s
advisory team and Bayer on how to improve crop quality and yields using
the best practices of sustainable agriculture. About 8,000 farmers across
Ukraine received training in 2014 and more are expected to be trained.
Rufat Alimardanov, IFC’s Country Manager for Ukraine and Belarus, said,
“Agribusiness is key for the Ukrainian economy, accounting for about
a third of exports and around 20 percent of employment. IFC is committed
to supporting the sector further. We hope this project will highlight the
importance of providing affordable financing to SMEs in the agribusiness
The new project builds on the experience of an innovative previous facility
launched four years ago by IFC, Bayer and Raiffeisen Bank Aval, which helped
farmers bridge the gap for financing critical inputs between sowing and
harvesting. The guarantee provided over $36 million in affordable financing
to 128 farms, with the program reaching more than 11,327 farmers.
Bayer is a global enterprise with core competencies in the Life Science
fields of health care and agriculture. Its products and services are designed
to benefit people and improve their quality of life. At the same time,
the Group aims to create value through innovation, growth and high earning
power. Bayer is committed to the principles of sustainable development
and to its social and ethical responsibilities as a corporate citizen.
In fiscal 2014, the Group employed around 119,000 people and had sales
of EUR 42.2 billion. Capital expenditures amounted to EUR 2.5 billion,
R&D expenses to EUR 3.6 billion. These figures include those for the
high-tech polymers business, which is to be floated on the stock market
as Covestro. www.bayer.com
Bayer has been present in Ukraine since 1992. The team is represented by
more than 500 professionals who bring knowledge and innovation in both
Life Science fields: health care and agriculture. www.bayer.ua
About Raiffeisen Bank Aval
Raiffeisen Bank Aval was registered on March 27, 1992. Since October 2005,
the Bank has been part of Raiffeisen Bank International AG. As of June
30, 2015 the Group held 96.45% of shares in the Bank.
The Bank provides a broad range of standard and innovative banking services
through its nationwide network which comprised, as of 1H 2015, 619 outlets
located in big cities, provincial and community centers throughout Ukraine.
For more information, visit https://www.aval.ua/
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with more than 2,000 businesses worldwide, we use our capital, expertise,
and influence, to create opportunity where it’s needed most. In FY15,
our long-term investments in developing countries rose to nearly $18 billion,
helping the private sector play an essential role in the global effort
to end extreme poverty and boost shared prosperity. For more information,