As stated on the project disclosure page, FMO and DCP will fund CAPEX for the construction of a new soybean processing facility, additive production line and packaging line. These projects are expected to reduce input costs for the company while supporting growth in packaged feed. The company also intends to implement a vertical integration project into animal protein that will be developed in accordance with FMO's E&S and animal welfare standards.
The investment supports the core strategy of FMO by deploying capital in the circle around Europe and in direct investments in agricultural companies where capital is scarce. The deal has been sourced by Diligent Capital Partners, one of FMO’s partners in Ukraine. In executing this investment FMO is also supporting the development of DCP as a future fund manager in Ukraine, thus supporting the local Private Equity market.
The FMO categorized the E&S risk of the project as B+.
As stated on their website, Diligent Capital Partners is a mid-market private equity firm located in Kiyv, Ukraine.
FMO together with Diligent Capital Partners (DCP), a Ukrainian private equity fund manager, will invest in A.P.K.U. FINANCE LTD, one of the largest agri-processing holdings in Ukraine. The company is active in the segments of animal feed, premixes and concentrates, veterinary drugs and pet goods. It operates five production facilities located in Poltava, Khmelnytskyi and Dnipropetrovsk regions with a total annual nominal production capacity of ca. 600kt, including 30kt of premixes and concentrates.
There is not much information available on A.P.K.U. Finance Ltd., apart from the Cyprus company registry reporting that A.P.K.U. FINANCE LTD is registered in Cyprus at 31/12/07 as a Limited Company. The Registration Number for this Cyprus Limited Company as held by the Official Government of the Cyprus Registrar Of Companies is HE217795.
No project contacts provided at the time of disclosure.
Financial Intermediary - Diligent Capital Partners:
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ACCOUNTABILITY MECHANISM OF FMO
Communities who believe they will be negatively affected by a project funded by the Dutch Development Bank (FMO) may be able to file a complaint with the Independent Complaints Mechanism, which is the joint independent accountability mechanism of the Dutch Development Bank (FMO) and the German Investment Corporation (KfW). A complaint can be filed in writing, by email, post, or online. The complaint can be filed in English or any other language of the complainant. The Independent Complaints Mechanism is comprised of a three-member Independent Expert Panel and it can provide either problem-solving, compliance review or both, in either order. Additional information about this accountability mechanism, including a guide and template for filing a complaint, can be found at: https://www.fmo.nl/independent-complaints-mechanism