MHP WCF

completed

MHP is a vertically integrated poultry and grain producer. It owns and operates the key steps of the chicken meat production process, starting from crop growing; grain processing; fodder production; egg incubation; poultry processing; distribution and sales. Associated agricultural and processing operations include sunflower oil, sausages and cooked meat production; fruit growing and sell; cattle breeding; meat processing.MHP has requested IFC for a working capital loan to support MHP’s strategy to increase its presence and grow including financial support to increase the land under cultivation up to approximately 500,000 ha by year 2016 in connection with the Company’s expansion plan in farming and poultry operations. Once the first phase of the Vinnytsia new poultry facilities comes online in 2013, MHP’s working capital requirements are expected to increase to be financed through internal cash generation and IFC debt.This would be IFC’s fourth investment in the MHP. In 2003, IFC initially invested in MHP to support its efforts in chilled poultry distribution and sunflower feed technology (Project ID 21071). IFC followed-up with an equity investment and a loan in 2005 (Project ID 24011) for further expansion of existing facilities and construction of new ones in Mironivsky’s complex of integrated operations. Information about these projects was disclosed on the IFC’s website and locally. In 2010, IFC invested in MHP to support its efforts in expanding the scope of its agricultural operations. E&S performance for this last investment is satisfactory and ESAP’s action items have been effectively implemented. Information on the E&S aspects of the current Project (Project ID 29204) can be found at the IFC website through the following link:http://www.ifc.org/ifcext/spiwebsite1.nsf/ProjectDisplay/ESRS29204.