Translated version of this PSD: Ukrainian
The EBRD has approved a USD 65 million loan to JSC Myronivsky Hliboproduct for financing its working capital associated with expanding operations (i.e. purchasing of sunflower seeds and other raw materials for further processing and/or use in production of poultry meat) as well as for the construction of a biogas plant at the poultry farm Oril Leader.
The Bank’s financing will facilitate
(i)energy savings resulting from installation of a biogas plant,
(ii) strengthening of backward linkages to farmers as the client will buy higher volumes of sunflower seeds from numerous farmers and agro-producers, which will improve and increased demand for farmers’ product and will provide farmers with higher liquidity, which is particularly valuable during the ongoing economic downturn, and
(iii) the client’s expansion strategy aimed at satisfying growing demand for protein products and ensure market expansion and competition
JSC Myronivsky Hliboproduct (JSC MHP), incorporated in Ukraine, is a company of MHP group (“MHP”) - the largest vertically integrated poultry meat producer in Ukraine. JSC MHP is wholly owned by MHP S.A., a holding company in Luxembourg.
A USD 65 million debt facility.
USD 65 million.
Categorised B. The environmental and social due diligence comprised an independent third party corporate audit conducted by specialist environmental, health and safety and animal welfare experts. The Bank also co-operated closely with the International Finance Corporation (IFC) who shared their due diligence findings with the Bank. IFC has previously provided two loans to the Company and agreed an environmental and social action plan with the Company, which they are now monitoring under their own requirements. The EBRD due diligence reviewed the Company's environmental and social management systems and its performance against EBRD's Performance Requirements (PRs) and included site assessments of a selection of the company's production facilities.
The consultants found that the company's facilities are generally operating to a level consistent with national and EU standards for environment, occupational health and safety, animal welfare and bio security, The facilities are generally very modern and advanced. Labour practices are in line with Ukrainian requirements and the company's activities do not adversely impact local communities. The audit did, however, identify a number of improvements needed to comply with the Bank's PRs, such as animal welfare and OHS improvements. There is also a need to develop and implement a corporate level environmental and occupational health and safety management system. The recommendations resulting from the due diligence were formulated into a time-bound costed Environmental and Social Action Plan (ESAP) which was finalised and agreed with the Client prior to EBRD Board approval of the project. The ESAP covers a number areas including corporate level management actions, generic actions uniform across production sites, and site specific actions.
The Company has been providing updates to EBRD, through the annual environmental and social reporting process, on the implementation of the ESAP. It is evident from these reports, that the Company is making good progress in the implementation of the ESAP and that there are no actions which are behind date. EBRD will continue to monitor progress through both annual environmental reports and site visits as and when considered necessary.
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