Maisadour

Location:

Ukraine

Project number:

40345

Business sector:

Agribusiness

Notice type:

Private

Environmental category:

B

Target board date:

14 Jul 2009

Status:

Repaying

PSD disclosed:

12 Jun 2009

Project Description

The EBRD is considering providing of up to €23 million syndicated loan to Maïsadour Semences Ukraine (“MAS Ukraine”) to restructure the existing debt portfolio as well as to construct the second corn dryer and to purchase the irrigation and field equipment.

Transition Impact

MAS Ukraine has the first modern maize seed production plant in Ukraine. It cooperates with local  farmers who produce seeds for MAS Ukraine on their own plots, enabling farmers to value to their farm products. MAS provides extensive agronomic assistance and training to the farmers with no prior experience in seed production. The Project will contribute to greater cost efficiency in the market as most of the commercial seeds used in Ukrainian agriculture are imported. There will be backward linkages to Ukrainianfarmers as they will receive parental seeds from MAS Ukraine, cultivate them on their own land and sell the unprocessed commercial seeds back to MAS Ukraine which will process them. There will be forward linkages to farmers as they will be able to buy processed certified hybrid seeds from from MAS Ukraine which should be able to achieve better yields for their crops as they are adopted to local conditions and of better quality than seed produced by local competitors in mostly outdated processing plants.

In addition, part of the facility will be used to finance irrigation equipment which will be leased to the farmers producing seeds for MAS Ukraine. The area under irrigation will be doubled to 3,500 ha, improving yields and reducing drought risks. Farmers are able to use the irrigation equipment in other crops (e.g. wheat), too. Such investments remain rare in Ukraine.

The Client

Maisadour Semences Ukraine (“MAS Ukraine”) is a subsidiary of Maisadour Semences S.A. (“MAS”, “Sponsor”). MAS is a French seed production company which is a, subsidiary of Maïsadour Group which owns 60%, and Syngenta Seeds which owns 40%. Maisadour Group is a French cooperative operating in various agribusiness segments (seeds, cereals, vegetables, animal feed, poultry breeding, retail, etc.). Syngenta Seeds is a subsidiary of Syngenta, the Swiss agribusiness multinational focused mainly on crop protection and commercial seeds.

EBRD Finance

Long term loan of €23 million (including syndication) to MAS Ukraine with a full corporate guarantee from the Sponsor.

Project Cost

Confidential.

Environmental Impact

This project was categorized B under the EBRD’s Environmental and Social Policy 2008.

The proposed project involves construction of a second seed dryer within the footprint of the existing plant with limited additional environmental or social impacts. Under the proposed project the Company will be required to continue to comply with the Bank’s Environmental and Social Policy 2008 Performance Requirements applicable to the project (specifically PRs 1-8 and 10). The Bank will monitor the Companies’ environmental and social performance for the lifetime of the loan through annual environmental and social reporting and via periodic site visits. The Companies will be required to immediately notify the Bank of any incidents or accidents likely to have an effect on the environment or worker and public safety.

Technical Cooperation

None.

Company Contact

Régis Fournier
Route de Saint Sever BP27
40001 Mont de Marsan Cedex
FRANCE
Phone : +33 558 058 311
Fax: +33 558 058 496
E-mail: RF4000@maisadour.com
Website: www.maisadour-semences.fr

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Project Complaint Mechanism (PCM)

The Project Complaint Mechanism (PCM) is the EBRD's accountability mechanism. It provides an opportunity for an independent review of complaints from individuals and organisations concerning EBRD-financed projects which are alleged to have caused, or are likely to cause, environmental and/or social harm.

Please visit the Project Complaint Mechanism page to find information about how to submit a complaint. The PCM Officer (pcm@ebrd.com) is available to answer any questions you may have regarding the submission of a complaint and criteria for registration and eligibility, in accordance with the PCM Rules of Procedure.