Financial institutions in Europe provide €50 million loan to a Ukrainian producer of agricultural products.
EBRD-Led €100 Million Investment Boosts Ukraine's Agribusiness and Job Market
The European Bank for Reconstruction and Development (EBRD) has spearheaded a significant €100 million financing package aimed at bolstering Ukraine's agribusiness sector, job market, and gender equality initiatives. The investment, which includes contributions from Swedish and British development finance institutions, will help safeguard employment, enhance agricultural resilience, and foster inclusive growth within MHP, a leading Ukrainian agribusiness group.
This financing package is crucial for maintaining jobs and building resilience in the food and agricultural sectors amid ongoing challenges in Ukraine. By supporting MHP, a major player in poultry and pork production, the investment contributes to stabilizing food supply chains and enhancing access to food both domestically and for exports.
While specific targets or programs related to gender equality in this financing package are not detailed, support to MHP is generally aligned with broader development goals often emphasized by the EBRD. The investment will enhance MHP's internal HR practices to promote gender equality and career development, and will fund training programmes for young people, contributing to building a skilled and resilient workforce for the future.
The financing also facilitates the reintegration of war veterans into the workforce by providing psychological training. MHP, which employs more than 30,000 people in Ukraine, with over 40% being women, has already brought over 370 veterans into employment.
The UK’s development finance institution, British International Investment, in partnership with EBRD, is providing €30 million for MHP to boost resilience and safeguard jobs, indicating coordinated international support for MHP’s role in Ukraine’s food security and employment. MHP has recently expanded by acquiring a majority stake in Spain’s Grupo UVESA to grow its international footprint, showing strategic growth alongside financial backing that aligns with operational excellence and sustainable development goals.
The remaining €10m of the financing package remains uncommitted as of yet, and would be committed subject to the successful mobilisation of another lender or lenders as a B-loan. The UK government’s £250m budget allocation to BII supports Ukraine’s reconstruction, with the MHP loan being a part of this budget. The Swedish government has allocated SEK 500m (€44.6m) for investments in Ukraine.
The EBRD's work in Ukraine is crucial for supporting the real economy, fostering the growth of the private sector, and implementing reforms in line with the EU's accession agenda. This investment is a testament to the EBRD's commitment to Ukraine and its people, and to the international community's support for Ukraine's economic stability and growth.
- The investment in MHP, a leading Ukrainian agribusiness group, through blended finance, includes contributions from Swedish and British development finance institutions, signifying international cooperation for Ukraine's economic growth and job market.
- In addition to boosting agribusiness, this €100 million investment also focuses on enhancing energy transition and technology, as it aims to make MHP's operations more sustainable and efficient.
- Alongside the food-and-drink industry, the financing package supports education-and-self-development by funding training programs for young people, aiming to build a skilled and resilient workforce for the future.
- The investment in MHP aligns with the lifestyle sector, as the improved HR practices to promote gender equality and career development will contribute to a more inclusive work environment.
- The general news about the EBRD's investment also highlights the sports-related aspect, as MHP's reintegration of war veterans into the workforce includes psychological training to aid their transition.
- To further extend its influence, MHP has recently ventured into business expansions, acquiring a majority stake in Spain’s Grupo UVESA, indicating strategic growth that also aligns with operational excellence and sustainable development goals.
