Major agricultural holding to receive pre- and post-harvest financing, address effects of climate change
The European Bank for Reconstruction and Development (EBRD) is providing a working capital loan of up to US$ 20 million to two subsidiaries of Ukraine’s Industrial Milk Company (IMC Group) an agricultural holding that is listed on the Warsaw Stock Exchange and involved in corn, sunflower, wheat, soybean, potato and dairy farming.
The loan will provide much-needed pre- and post-harvest financing essential for the successful operations of this export-oriented business. By supporting this project, the Bank is pursuing its strategy to develop the local agribusiness sector, which is currently responsible for at least 16 per cent of Ukraine’s GDP.
IMC Group will also become the first Ukrainian company to undergo an EBRD-commissioned assessment of resource efficiency and climate change adaptation. The assessment, which will draw on best practice in the management of climate risk, will help IMC Group review its current farming and cultivation practices and compare them with the best international practice. The company is also expected to develop a strategy based on analysis of the risks and effects of climate change on IMC Group’s operations and cost structure.
The EBRD is the largest international financial investor in Ukraine. As at the end of June 2016, the Bank had made a total cumulative commitment of almost €12 billion through 364 projects since the start of its operations in the country.