MHP Loan 2023 (IFC-46415)

Regions
  • Europe and Central Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Ukraine
Geographic location where the impacts of the investment may be experienced.
Specific Location
Vasylivka, Haisyn district, Vinnytsia region
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Sep 19, 2023
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Vynnytska Ptakhofabryka LLC (MHP PJSC)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Energy
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Loan Amount (USD)
$ 30.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 52.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Campaign Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Oct 31, 2023

Disclosed by Bank Aug 18, 2023

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the IFC, the project is to re-engage with MHP SE and its subsidiaries by providing up to US$30 million loan to Vynnytska Ptakhofabryka LLC, a subsidiary of MHP SE in Ukraine, to finance the upgrade and capacity expansion of an agricultural-waste-to-energy plant. The Company already operates two biogas plants to convert manure from its farms into green energy. As part of its decarbonization strategy, MHP plans to increase biomethane production in Ukraine by upgrading and expanding the capacity of its biogas plants in several stages.  The first stage to be financed under the Project will serve to demonstrate the viability of liquified biomethane production.                                           

As part of the Ukraine Agri Resilience Upstream Project (ID 607918), IFC provided technical and financial expertise to MHP on developing business plans for the waste-to-energy investment program.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

As stated by the IFC, the total Project cost is estimated at US$52 million. The proposed IFC investment is up to US$30 million unsecured A Loan. MHP will finance the rest of the Project cost with its own funds.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

As stated by the IFC, established in 1998, MHP is a leading international food and agrotech group, and the largest producer of poultry, culinary, and processed meat products in Ukraine. MHP is listed on the London Stock Exchange since 2008. Mr. Yuriy Kosyuk is the founder, CEO, and controlling shareholder of MHP.

As stated on the company's website, Vinnytsia Poultry Farm LLC was founded in 2011, and the following year the first breeding of birds in poultry houses was implemented.
The company owns both breeding and processing facilities in the Vinnytsia region, Ukraine.


Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - MHP SE:

Anastasiya Sobotyuk - IR Director
Phone: +380503392999
Email: a.sobotyuk@mhp.com.ua
Address: Nicolaides Sea View City Block AB, 3-7 Archbishop Makarios III Avenue, 6017 Larnaca, Cyprus
Website: www.mhp.com.ua/en/glorytoUkraine / https://mhp.com.ua/en/tov-vinnicka-ptahofabrika-prat-mhp

Local access of project documentation: PrJSC "MHP", 158, Ak. Zabolotnogo Str, Kyiv, Ukraine, 03143

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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How it works