Investment entities from Europe provide Ukrainian agricultural product manufacturer with a €50 million loan
A €100 Million Investment Package to Bolster Ukraine's Food Sector
In a significant move to support Ukraine's food and agricultural sectors during the ongoing conflict, a €100 million financing package has been announced, led by the European Bank for Reconstruction and Development (EBRD). The package, which also includes contributions from Swedish (Swedfund) and British (British International Investment - BII) development finance institutions, is aimed at safeguarding tens of thousands of jobs and building resilience in these vital sectors [1][2].
The financing will be utilised for several key areas:
- Enhancing Production Efficiency: Investments will be made in energy security and upgrades to agricultural machinery and sunflower processing equipment to improve production and operational capacity.
- Geographical Diversification: The package aims to diversify MHP’s product portfolio and geographic footprint to mitigate risks related to the war.
- Human Capital Development: The investment will enhance internal HR practices, promoting gender equality and career development, as over 40% of MHP’s workforce are women.
- Reintegration of War Veterans: The financing will facilitate the reintegration of war veterans into the workforce, including psychological training and employment support.
- Supporting Small Businesses: The investment will support thousands of small businesses in Ukraine, such as over 2,000 small retail stores and 2,500 local farmers connected via MHP’s supply chain.
MHP SE, the recipient of this investment, is a significant player in Ukraine's agribusiness sector. As the country's largest producer of poultry and processed meat products and a key player within sunflower oil, MHP employs more than 30,000 people [1][2].
This investment not only underpins MHP’s business operations amid war-related disruptions but also contributes to economic stability, employment continuity, and resilience of Ukraine’s critical food systems. It also supports vulnerable populations such as veterans and women [1][2][3].
The UK government's £250m budget allocation to BII is being used to support Ukraine's reconstruction, and BII's investment in MHP aligns with its mandate to support the private sector and co-invest with experienced partners in key sectors such as agriculture, green infrastructure, energy, and financial services [1]. The EBRD's investments in Ukraine and its neighbours are essential for promoting the growth of the private sector and the economy, making Ukraine less reliant on external budget support over time [4].
[1] - https://www.ebrd.com/news/2022/mhp-se-to-receive-100-million-ebrd-led-financing-package.html [2] - https://www.swedfund.se/news/swedfund-invests-in-ukraines-mhp-se/ [3] - https://www.gov.uk/government/news/uk-announces-further-support-for-ukraine [4] - https://www.ebrd.com/news/2022/ebrd-continues-to-support-ukraine-s-private-sector.html
- The €100 million investment package, led by the European Bank for Reconstruction and Development, will not only strengthen MHP's business operations but also promote social impact through human capital development and the reintegration of war veterans.
- The investment in MHP, a significant player in Ukraine's agribusiness sector, will support the transition towards renewable energy by funding upgrades to agricultural machinery and sunflower processing equipment.
- As part of the energy transition, the financing will also ensure energy security by improving production efficiency in Ukraine's food sector.
- Development finance institutions, such as Swedish (Swedfund) and British (British International Investment - BII), are contributing to the package to further the industry's finance and investing activities, aiming to stabilize and develop Ukraine's economy.
