The European Bank for Reconstruction and Development (EBRD) will increase debt exposure to MHP, one of the largest Ukrainian agroholdings, by $55 million, to $100 million.
EBRD Principal Adviser for External Affairs Anton Usov told Interfax-Ukraine that the decision was made by the bank’s board of directors on Oct. 29.
The additional financing would finance the acquisition of agricultural and grain infrastructure operations in Russia, and finance capital expenditures related to agricultural equipment for MHP Group’s agricultural farming operations in Ukraine.
As reported, the EBRD in July 2010 provided a $50 million loan to MHP. The financing for MHP consisted of a $35 million working capital loan that was to be used to purchase sunflower seeds and other raw materials to be further processed, and could also be used in poultry production. A further $15 million was to be channeled to energy efficiency improvements.
The energy efficiency improvements envisaged, in particular, the installation of a biomass boiler, the modernization of the existing storage and the construction of new cold storage units at MHP’s meat processing plant.
MHP is the largest poultry producer in Ukraine. It is also engaged in the production of grain, sunflower oil and other foods.
