Press Releases

IFC Partners with Raiffeisen Bank Aval, Bayer to Improve Access to Finance for Ukrainian Farmers

IFC in Kiev:
Olena Harmash

Phone: +380 44 490 64 00


Raiffeisen Bank Aval:

Leonid Zyabrev

Phone: +380 44 490 89 95



Tatyana Panfilenko

Phone: +380 044 220 33 00


Kiev, Ukraine, May 12, 2011
— IFC, a member of the World Bank Group, is partnering with Raiffeisen Bank Aval and Bayer Ltd in a landmark deal that will make high-quality crop protection products more affordable for small and medium-sized agricultural companies and farmers across Ukraine.

IFC and Raiffeisen Bank Aval have developed a risk-sharing facility that will enable farmers to buy pest management products on credit from industry leader Bayer, with the purchases to be paid in full once the year’s crops are sold. The risk-sharing portfolio will cover up to $140 million of seasonal payment obligations to Bayer, of which IFC will guarantee up to half the value.

Because crop protection products are a later input during the growing season, farmers often have little money available to purchase good quality pest management materials when they need them. As such, they are forced to settle for lower quality, less effective products. The new partnership between IFC, Raiffeisen Bank Aval and Bayer intends to change this, while at the same time helping Ukraine boost its agricultural output.

“We are very pleased to work with IFC and Raiffeisen Bank Aval to launch this pilot in Ukraine. Thanks to this facility, farmers will be able to buy necessary crop protection inputs to maximize crop yields. We have crop protection operations in 60 countries and hope we will be able to replicate it in other emerging markets where farmers face similar financing constraints,” said Tobias Menne, Bayer's Managing Director in Ukraine.

"This facility will allow Raiffeisen Bank Aval, which is an undisputed leader in Ukrainian agro lending, to provide its new or existing farmer-clients with opportunities to improve their productivity through better access to crop protection products," said Artur Iliyav, Deputy Chairman of the Board of Raiffeisen Bank Aval.

Ukraine enjoys favorable climatic conditions, fertile soil and has emerged as a key exporter of grain, despite its relatively low average farm productivity. However, access to finance for farmers remains challenging and helping the Ukrainian agricultural sector to achieve its full potential by intensifying production and improving productivity is important to global food security.

Elena Voloshina, IFC’s Head of Operations in Ukraine, said: “This innovative facility brings together a reputable crop production specialist and a local financial institution with significant experience in rural credit. We are glad to strengthen our cooperation with long-term client Raiffeisen Bank Aval and to set an example for other banks for further investment in this crucial, yet largely underserved sector.”

IFC is committed to helping Ukraine maximize its agribusiness potential and has so far invested around $481 million in the country’s farming sector. In agribusiness, IFC supports the entire value chain, from farm production to collection, processing and distribution. It also offers an extensive advisory program, including projects focused on development of the agro-insurance market in Ukraine, improving food safety standards and developing supply chains for fruits and vegetables.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit

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