Kiev, December 1, 2003 – The International
Finance Corporation (IFC), the private sector financing arm of the World
Bank Group, signed an agreement today to provide a $30 million loan to
CJSC Myronivsky Khliboprodukt, a leading vertically integrated poultry
producer in Ukraine. IFC’s loan will support the company’s expansion
and modernization plans to improve efficiency, increase production capacity,
and strengthen its distribution network.
Under the $119 million investment project, the company will expand its
integrated poultry production facilities, including breeding and broiler
farms, hatcheries, and processing plants, and will construct a new feedmill.
IFC’s loan to Myronivsky will help satisfy the rapidly growing demand
for fresh chicken products and provide the Ukrainian consumers with high
quality meat at affordable prices. The project will create employment opportunities
for small private entrepreneurs through establishment of around 900 independently
owned retail franchise outlets. The company will pilot new feedmill technology
for poultry feed production, the first of its kind in Ukraine.
“This is the first IFC investment to a local agribusiness producer in
Ukraine. We are glad to work with a solid company with good business approach
and willing to improve transparency and corporate governance,” said Edward
Nassim, IFC’s Director of the Central and Eastern Europe Department. “IFC
hopes that the loan we have provided to Myronivsky will serve as an example
for other leading Ukrainian companies with which we intend to build long-term
partnerships through investments and technical assistance.”
Italian and Swedish trust funds were mobilized to help the company with
the implementation of a Food Safety and Quality Management System and with
the establishment of new MIS and well functioning finance and accounting
The International Finance Corporation is a member of the World Bank Group.
IFC’s mission is to promote sustainable private sector investment in transition
economies, helping to reduce poverty and improve people's lives. IFC finances
private sector investments in the emerging markets, mobilizes capital in
the international financial markets, helps clients improve social
and environmental sustainability, and provides technical assistance and
advice to governments and businesses. From its founding in 1956 through
FY03, IFC has committed more than $37 billion of its own funds and arranged
$22 billion in syndications for 2,990 companies in 140 developing countries.
IFC's worldwide committed portfolio as of FY03 was $16.8 billion for its
own account and $6.6 billion held for participants in loan syndications.