IFC Doubles Investment in Ukraine, Supporting Agribusiness and Jobs
Kiev, Ukraine, September 6, 2013-IFC, a member of the World Bank Group, has doubled its investments in Ukraine during the last fiscal year, supporting the growth of the country’s agribusiness sector and helping create jobs.
During fiscal year 2013, which ended on June 30, IFC committed a record amount of nearly $300 million in Ukraine for its own account, up from $140 million in the previous 12 months. These investments will help realize the potential of the agribusiness sector, expand access to finance for local companies, and allow Ukrainian producers to expand into new markets and create jobs.
«Our work in Ukraine is built around three pillars; supporting agribusiness, developing infrastructure, and supporting the banking sector,» said Rufat Alimardanov, IFC’s regional head for Ukraine and Belarus. «Our financing activities are also designed to help improve the business environment and promote better energy and resource efficiency.»
In fiscal year 2013, IFC committed nearly $200 million in Ukraine’s agribusiness sector, supporting projects across the value chain, from farming, to processing, to distribution. Among other initiatives, IFC: • Supported the expansion of leading poultry producer Myronivsky Hliboproduct; • Helped meat producer Axzon bring the latest technology in pig farming to Ukraine; • Supported the diversification strategy of a leading sugar producer, Astarta; and • Contributed to development in the rural south by investing in the country’s largest industrial tomato producer, Agrofusion.
Other highlights included an $85 million financing package, which included $55 million mobilized from other lenders, for Ukraine’s fuel retailer, Galnaftogaz, and IFC’s debt financing for global retailer Auchan.
IFC also implemented a wide range of advisory programs in Ukraine which: • Helped Ukrainian companies become more competitive through implementing international food safety standards; • Improved resource efficiency and supported the modernization of supply chains in the agribusiness sector; • Worked to improve the environment for doing business; and • Strengthened the banking system and expanded access to finance for small and medium enterprises.
IFC’s total investments in Europe and Central Asia reached a record $4.5 billion during fiscal year 2013. Ukraine is the third-largest IFC exposure in the region after Turkey and Russia, and is the 14th largest IFC exposure globally. Since 2004, IFC has invested over $2 billion in Ukraine for its own account and mobilized about $760 million from other investors.
About IFC 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 FY13, our investments reached an all-time high of more than $25 billion, leveraging the power of the private sector to create jobs, spark innovation, and tackle the world’s most pressing development challenges.
