The European Bank for Reconstruction and Development (EBRD) is committing more resources to support agriculture – an important sector for the revival of the Ukrainian economy. For its latest project in this sector the Bank will provide a loan of up to US$ 30 million to Nyva Pereyaslavschyny (Nyva), one of the largest pork producers in Ukraine.
Nyva will use the loan proceeds to finance its current pig breeding operations by establishing two new farms. EBRD’s financing will also support the expansion of Nyva’s meat processing facilities and grain storages, increase of its land holdings and purchase of modern agricultural machinery.
The project is consistent with the EBRD strategy of supporting Ukrainian agribusiness projects with high added value and promoting the best international farming techniques. The project will enable Nyva to become one of the national benchmarks for environmental standards and for the highest standards of animal welfare and biological safety.
Oleksandr Mostipan, the Chairman of Agricultural Association Nyva Pereyaslavschyny, said: “Undoubtedly, the EBRD funding will help our company enter new stage of development. It is very important that the international financial institutions continue supporting local businesses during the period of adversity and transformations in Ukraine. We highly appreciate cooperation with the EBRD and this is a sign that we are on the right track.”
The deal is part of the EBRD’s operational response in Ukraine aimed at supporting the real sector of the domestic economy. The Bank expects to be able to invest around €1 billion a year in the country, with the annual level of investment since February 2014 now standing at over €500 million.
The EBRD is the largest financial investor in Ukraine. By 1 May 2014 the Bank had committed €8.4 billion (US$ 11.5 billion) through 327 projects in the country.