MHP Loan 2023

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The proposed IFC investment to MHP Societas Europea (MHP S.E.) and its subsidiaries in Ukraine (collectively, MHP or the Company), is a loan facility of up to US$30 million, to finance the waste-to-energy (WTE) project and US$ 100 million for refinancing its bonds(the Project”). MHP S.E. and its subsidiaries (collectively, “MHP” or the “Company”) is the largest integrated poultry producer in Ukraine, which operates a vertically integrated food production process, including crop growing; grain processing; fodder and vegetable (sunflower, soya and rapeseeds) oil production; hatcheries; poultry rearing and processing; meat-processing, convenience foods and food solutions, distribution and sales and WTE facilities.  The Company operates two WTE plants to convert manure from its poultry rearing farms into biogas. The WTE plant targeted by this investment is located in the village of Vasylivka, Haisyn district, Vinnytsia region. It was commissioned in 2019 and is the largest WTE plant in Ukraine with 12 MW capacity. IFC investment will include 2 stages. The first stage is the modernization of the existing WTE plant to produce and liquefy biomethane gas resulting in 14,000 tons of liquefied biomethane gas per year.  The second stage is the expansion of WTE capacity to up to 20.5 MW of electricity equivalent. This would be IFC’s sixth investment in MHP since 2003. Previous investments are available at: 2003 – Project #21071; 2005 - Project #24011; 2010 - Project #29204 ; 2012 - Project #32632; 2014 - Project #34041. MHP had an open Compliance Advisory and Ombudsman (CAO) case for Project # 34041 at exit in 2019 related to deficiencies of OHS and Stakeholder Engagement management practices. Latest details are available at  https://www.cao-ombudsman.org/cases/ukraine-mhp-01vinnytsia-oblast. .