IFC Supports Agribusiness in Ukraine with A New Investment in Astarta
IFC, a member of the World Bank Group, will provide a debt financing package to Astarta, a leading agricultural producer, as part of broader efforts to support Ukraine's farming sector and spur economic development in the country.
IFC is providing a $10 million loan for its own account and will mobilize another $15 million from other lenders. The financing will help Astarta strengthen its financial liquidity and scale up its operations during a challenging time for Ukraine's economy, while supporting a sector that accounts for over 20 percent of Ukraine’s gross domestic product. Agribusiness companies are also key exporters and hard-currency earners.
“We have started 2016 strongly,” said Viktor Ivanchyk, Astarta’s CEO. “IFC’s continued financial support will help us both enhance our export operations and implement and strengthen our business plan for the year.”
The investment is part of IFC strategy in Ukraine to boost the development of its agribusiness sector, while providing much-needed financing and helping to increase the country’s competiveness. Ukraine accounts for about 10 percent of global grain exports, with Astarta supplying grain to Asia, North Africa, and the Middle East.
“We believe in the long-term potential of Ukraine’s agribusiness sector,” said Rufat Alimardanov, IFC Country Manager for Ukraine and Belarus. “Helping the industry realize that promise will increase exports and spur much-needed growth in Ukraine.”
Astarta has been an IFC client since 2012 and has created about 500 jobs in rural areas over the last two years, despite Ukraine’s recession. The company now directly employs nearly 7,800 people. It also has strong rural links as it sources its products and services from about 3,000 farmers.
IFC has invested $845 million in Ukraine’s agribusiness over the last five years, supporting projects across the entire value chain, from farm production to processing and distribution. IFC also offers advisory programs in the country focused on simplifying business regulations for agribusiness, expanding access to finance for farmers, encouraging commercial bank lending to the sector, and developing the agri-insurance market. In addition, IFC works to enhance the competitiveness of local players by supporting improvements in food safety management and resource efficiency.
About Astarta
Founded in 1993, Astarta is a vertically integrated agro-industrial company specializing in food and agricultural production. The agricultural business focuses primarily on the cultivation of sugar beet, grains and oilseeds, the production of high-quality white sugar and milk, as well as the processing of oilseeds. For more information, visit http://astartakiev.com/en/about/
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with more than 2,000 businesses worldwide, we use our capital, expertise, and influence, to create opportunity where it’s needed most. In FY15, our long-term investments in developing countries rose to nearly $18 billion, helping the private sector play an essential role in the global effort to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
