Major Ukrainian agribusiness to take out $480m loan for debt refinancing and modernization
Photo: MHP

Ukrainian agricultural holding MHP, owned by Yuriy Kosyuk, has been granted loans in the total amount of $480 million for debt refinancing and maintenance of current activities. The money will be provided by the International Finance Corporation (IFC) from the World Bank Group, the European Bank for Reconstruction and Development (EBRD) and the U.S. International Development Finance Corporation (DFC), IFC reports.

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IFC will give MHP $30 million for the modernization and development of a complex for processing organic waste into electricity, as well as a $100 million loan to increase financial stability and refinance Eurobonds. IFC financing is provided under first loss guarantees provided by the United Kingdom, the IFC Canada Facility for Resilient Food Systems and other sources of blended concessional finance.

An EBRD loan of $100 million is also provided to ensure the financial stability of the MHP. Thanks to this money, the company will be able to refinance its Eurobonds during the period of limited access to capital markets. The loan is secured by a guarantee from Spain, as well as credit support from the EBRD Crisis Response Special Fund. The legal examination of the project is being carried out with the financial support of Japan.

Under the terms of cooperation with the EBRD, MHP has committed to strengthen its corporate climate governance with technical assistance financed by the Clean Technology Fund under the High Impact Programme.

The DFC announced that they will give MHP a $250 million loan to support the work of the Ukrainian chicken and grain producer and mitigate the consequences of Russia's full-scale invasion of Ukraine. These funds will be used both for debt refinancing and to support meat and grain production. The loan will also help the company modernize its facilities, including increasing storage capacity and installing backup power, and support the development of its export potential by increasing its ability to transport goods by trucks, DFC said.

The IFC financing is provided as part of the $2 billion Economic Resilience Action program launched last year to preserve economic activity and create new jobs amid the Russian invasion of Ukraine.

MHP is a leading international company in the field of food and agricultural technologies, the largest producer of poultry meat, semi-finished products and meat products in Ukraine. In Ukraine, the company employs more than 28,000 workers and, despite disruptions in 2022, successfully restored the supply and export routes of its products to more than 70 countries. In addition, MHP supports thousands of small businesses, including more than 2,000 small retail stores and 2,500 local farmers in Ukraine.

MHP is represented by the trademarks "Nasha Ryaba", "Lehko", "Bashchynskyi". Yuriy Kosyuk owns 59.7% of MHP shares through WTI Trading Limited. The main facilities of the group are located in Ukraine, it also has factories in Slovenia, Serbia, Croatia and Bosnia and Herzegovina (via Perutnina Ptuj).

The Fitch rating agency warned at the beginning of the year that MHP will have to agree on the refinancing of the 2024 bonds.