Investment entities from Europe provide €50 million loan to a Ukrainian agribusiness product manufacturer
In a significant move to support Ukraine's economy during challenging times, the European Bank for Reconstruction and Development (EBRD) has announced a €100 million financing package for MHP SE, a leading agribusiness products producer in Ukraine. This investment is part of a broader effort to sustain Ukraine’s food and agricultural sectors amid the ongoing war.
Boosting Production Efficiency and Resilience
The funds will be used to improve production efficiency, helping MHP SE maintain and potentially increase output despite conflict-related disruptions. This investment will also enable the company to diversify its product portfolio and geographic footprint, spreading risk and enabling a more flexible and resilient business model.
Nurturing Human Capital
The investment is not just about boosting production but also about nurturing human capital. It aims to safeguard employment and support livelihoods in a precarious economic environment. The financing will also enhance MHP’s internal HR practices to promote gender equality and career development.
Aligning with International Mandates
British International Investment (BII) and Swedfund, two international development finance institutions, have committed €50 million to this investment. BII's investment aligns with its mandate in Ukraine to support the private sector and co-invest with experienced partners in key sectors such as agriculture, green infrastructure, energy, and financial services.
The UK government's £250 million budget allocation to BII is used to support Ukraine's reconstruction. Swedfund, on the other hand, has previously invested in the Ukrainian IT and energy sectors and has more than 30 projects supporting the public sector with feasibility studies within critical infrastructure and recovery, such as energy, water, wastewater, and digitalisation in Ukraine.
A Crucial Support for Ukraine's Private Sector
The EBRD's support for Ukraine's private sector is crucial for creating jobs, sustaining livelihoods, providing tax revenues, and contributing to a healthy economy during wartime. This investment will be used for MHP’s investment programme, which includes investing in energy security, improving production and operational efficiency, and diversifying geographically.
Supporting Veterans' Reintegration
MHP has already brought over 370 veterans into employment. The investment will facilitate the reintegration of war veterans into the workforce by providing psychological training.
In conclusion, the EBRD-led financing is a targeted measure within a larger framework of multilateral investment and support efforts that seek to sustain food production capabilities and economic stability in Ukraine during wartime. This strategic investment will not only boost MHP SE's operations but also contribute to job security, business resilience, and veterans' reintegration in Ukraine.
- The European Bank for Reconstruction and Development's €100 million financing package for MHP SE will facilitate investments in energy security, production efficiency, and geographic diversification, aiming to increase resilience and output amid conflict-related disruptions.
- International development finance institutions, such as British International Investment and Swedfund, are key partners in the EBRD's investment in MHP SE. Their commitments align with mandates in Ukraine that support the private sector, including agriculture, green infrastructure, energy, and financial services.
- In addition to boosting production efficiency, the investment in MHP SE focuses on nurturing human capital, particularly by safeguarding employment, promoting gender equality, and providing psychological support for war veterans, enabling their reintegration into the workforce.
- By supporting MHP SE's investment programme, the EBRD plays a crucial role in bolstering Ukraine's private sector, creating jobs, sustaining livelihoods, providing tax revenues, and contributing to a stable economy during wartime, with the ultimate goal of fostering business resilience and securing economic stability.
