Agrofusion WC Loan

completed

The proposed transaction would be IFC’s second project with Agrofusion Group (“Agrofusion” or the “Company”), an existing IFC client since 2012 with good environmental and social performance. Established in 2007, Agrofusion is the largest vertically integrated tomato paste producer in Ukraine, marketing its products mainly to large FMCG (Fast Moving Consumer Goods) companies in Ukraine, the European Union and other countries all over the world. The Company’s operational assets include: (i) two tomato paste plants with total processing capacity of approximately 480,000 metric tons of tomatoes per season (8,000 tons of tomatoes a day); (ii) two seedling green-houses; and (iii) 20, 4960 hectares of irrigated leased land in Mykolayiv and Kherson regions, as well as modern farming equipment. The Company reached full production capacity in 2014 to 52,778 tons of tomato paste and in 2015, expanded its capacity with additional capex to 61,500 tons of paste. Agrofusion processing facilities are located in southern Ukraine; Farm Enterprise “Organic systems” in Mykolayiv (Northern factory) and Farm Enterprise “Integrated Agrosystems” in Kherson (Southern Factory) regions, which have traditionally been tomato growing lands. The factories were established in 2007 and 2009 respectively with state of art technologyIFC’s financing would consist of a 3-year working capital loan of up to US$10 million secured with Agrofusion’s property, plant and equipment.IFC loan would help Agrofusion (i) refinance some of existing short-term credit lines from local banks in the amount of US$4.3 million, and (ii) finance its working capital needs in the amount US$5.7 million, which have been increasing in line with the product output growth. As the result, the Company would be able to further strengthen its position in Ukraine and increase exports to Central Europe and the CIS (excluding Russia).