EU-backed development finance institutions lend €50 million to a Ukrainian agriculture business product manufacturer
In a significant move to safeguard jobs and enhance resilience in Ukraine's food and agricultural sectors during the ongoing war, a €100 million financing package led by the European Bank for Development and Reconstruction (EBRD) has been allocated to MHP SE, a leading Ukrainian agribusiness.
The financing package, which includes a €40 million EBRD commitment, complemented by €20 million from Swedish finance institution Swedfund and €30 million from British International Investment (BII), will be primarily used to bolster energy security, improve production and operational efficiency, and facilitate geographic diversification to mitigate war impacts.
MHP SE, Ukraine's largest poultry and processed meat producer and a significant player within sunflower oil production, will use the funds to upgrade equipment for sunflower processing and agricultural machinery, thereby improving food production efficiency. Enhancing energy security for operations is also a key priority, with the aim of ensuring stable and reliable production during conflict-related disruptions.
The company is also diversifying geographically to spread risk and maintain supply chains despite instability in Ukraine. This diversification effort supports not only business continuity but also humanitarian and social resilience during wartime conditions.
There is a social component to the financing as well. It supports internal human resources efforts to promote gender equality and career development and to reintegrate war veterans into the workforce. Over 370 veterans have already been hired, and they will receive psychological training and employment opportunities.
This €100 million financing package is part of a broader international effort coordinated by the EBRD and development finance partners to support Ukraine's economic sustainability and food security amid the war. The investment will strengthen Ukraine's food security and global supply chains by supporting MHP's ability to maintain and expand exports to over 70 countries.
Swedish and British development finance institutions have committed €50 million to the package. Swedfund's investments in Ukraine have been in the IT and energy sectors, with more than 30 projects supporting the public sector. 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.
The investment will also fund training programs for young people, helping to build a skilled and resilient workforce for the future. The EBRD's work in Ukraine and its neighbours is important for supporting the growth of the private sector and reforms in line with the EU's accession agenda.
The UK government's £250 million budget allocation to BII is being used to support Ukraine's reconstruction. The EBRD's support for Ukraine's private sector is seen as crucial for creating jobs, sustaining livelihoods, providing tax revenues, and ensuring Ukraine's self-sustainability and growth.
MHP SE employs over 30,000 people, with more than 40% being women. This financing thus plays a role not only in business continuity but also in humanitarian and social resilience during wartime conditions.
- This €100 million financing package, led by the EBRD, is a significant move in the transformation of Ukraine's energy sector, aiding the energy transition towards renewable-energy sources.
- The investment in MHP SE, a leading agribusiness, will contribute to the manufacturing industry's growth, particularly in the production of poultry, processed meat, and sunflower oil.
- With funds allocated for equipment upgrades, MHP SE aims to boost production efficiency, increasing output for the food-and-drink industry.
- In this venture, the company will also prioritize energy security, enhancing sustainable energy use and ensuring stable production during conflict-related disruptions.
- As part of its diversification strategy, MHP SE plans to expand operations beyond Ukraine, mitigating risks and maintaining supply chains during instability.
- This geographic expansion supports not only the company's business continuity but also contributes to the global economy by strengthening Ukraine's commodity exports.
- The investment will enable MHP SE to maintain and expand its presence in over 70 countries, contributing to global food security during challenging times.
- The financing package's social initiatives focus on promoting gender equality, offering career development opportunities, and reintegrating war veterans into the workforce.
- MHP SE has already employed over 370 veterans, providing them with psychological training and job opportunities, contributing to their personal growth and well-being.
- The financing package is part of a larger international initiative to support Ukraine's economic resilience and facilitate a smooth transition to a post-conflict reality.
- Swedish Swedfund and British International Investment (BII) are vital development finance partners in this endeavour, committing €50 million to the package collectively.
- Swedfund's investments in Ukraine have primarily targeted the IT and energy sectors, supporting over 30 projects in the public sector.
- BII's investment in MHP SE aligns with its mandate to support the private sector and partners in key sectors like agriculture, green infrastructure, energy, and financial services.
- The financing package will also fund training programs for young people, nurturing the next generation of skilled workers for the industry.
- The EBRD's work in Ukraine plays a crucial role in supporting the growth of the private sector and implementing reforms in line with the EU's accession agenda.
- The investment will help Ukraine's housing market by stimulating economic growth and job creation, which will in turn contribute to personal-finance stability for citizens.
- Europe's aerospace, retail, cooking, transportation, and automotive industries may benefit indirectly from this investment by maintaining or improving Ukraine's export ties.
- The financing package reinforces MHP SE's commitment to healthy-cooking practices and sustainable food production, which can have a positive impact on lifestyle choices and dietary habits.
- This investment may also have an indirect impact on the travel industry, as a stronger economy and improved living standards encourage people to travel more, both domestically and internationally.
- The widespread adoption of electric-vehicles can reduce carbon emissions in Ukraine's transportation sector, contributing to global efforts for combating climate change.
- This investment will further boost the development finance sector's engagement with the Ukrainian economy, encouraging increased investment in industries like education-and-self-development, job-search services, and lifelong-learning opportunities.
- MHP SE's commitment to skill-training initiatives is expected to benefit not only the company but also the broader workforce, enhancing productivity and career development prospects for employees.
- The investment in MHP SE will have a positive impact on sports-related industries in Ukraine, as employment opportunities in the agribusiness sector often create spin-offs in fields like football, basketball, American football, and other sports.
- The financing package will support MHP SE's continued success in major European leagues like the Champions League, NFL, WNBA, and NBA, as well as various national competitions.
- The European Bank for Development and Reconstruction's (EBRD) investment in MHP SE will enhance the company's competitiveness and global recognition in the fields of animal husbandry, poultry farming, and food processing.
- The EBRD's investment will further strengthen Ukraine's banking-and-insurance sector by encouraging private investment and fostering partnerships with international financial institutions.
- Real-estate development in Ukraine will benefit from the increased economic activity driven by MHP SE's expansion, as commercial properties may see increased demand for leasing and purchase.
- This investment in MHP SE aligns with the UK government's strategic focus on wealth-management, aiming to support Ukraine's financial stability and economic growth.
- Data-and-cloud-computing companies may find opportunities to partner with MHP SE and other businesses in Ukraine, as the sector's growth can drive digital transformation and improve operational efficiency.
