Kiev, Ukraine, Dec 11, 2012—IFC,
a member of the World Bank Group, has provided a $16 million loan to Agrofusion,
Ukraine’s largest industrial tomato producer, to support the development
of food production in the rural south, helping promote sustainable agriculture
and contributing to the country’s economic recovery.
IFC’s debt financing will help strengthen
the company’s position in domestic and export tomato paste markets, contribute
to food security, and promote best farming practices among other vegetable
producers in Ukraine. The country has fertile soils and favorable weather
conditions but outdated farming practices and limited access to finance
prevent local producers from being able to raise food production significantly.
“IFC’s loan will help us secure more
stable financing in these challenging times,” said Ivan Sakal, Agrofusion’s
Chief Financial Officer. “We are committed to producing high-quality products,
using modern and resource efficient practices and count on this partnership
with IFC to further improve our position in the domestic market and expand
Agrofusion, located in the Kherson and
Mykolayiv regions in the south, is the only Ukrainian company that has
established industrial production of tomatoes with yields that are comparable
to those of the leading world producers.
“Food security is a global priority
and Ukraine could play an important role in that,” said Rufat Alimardanov,
IFC’s Regional Manager for Ukraine and Belarus. “Working with local producers,
we aim to help increase productivity and enhance efficiency. Agrofusion
is a good example on how we can help promote better farming practices among
other vegetable producers in Ukraine and strengthen rural development in
In Ukraine, IFC supports the entire
agribusiness sector, from farming, to processing, to distribution. IFC
also offers advisory programs in Ukraine on simplifying business regulations
for the sector, expanding access to finance for farmers, encouraging bank
lending, and developing the agri-insurance market. IFC also works to enhance
the competitiveness of local players by supporting improvements in food
safety management and resource efficiency.
IFC, a member of the World Bank Group,
is the largest global development institution focused exclusively on the
private sector. We help developing countries achieve sustainable growth
by financing investment, mobilizing capital in international financial
markets, and providing advisory services to businesses and governments.
In FY12, our investments reached an all-time high of more than $20 billion,
leveraging the power of the private sector to create jobs, spark innovation,
and tackle the world’s most pressing development challenges. For more
information, visit www.ifc.org.