Dragon Capital Advised on IFC’s Investment in Agricultural Producer Mriya
Kyiv, June 17, 2010 – IFC, a member of the World Bank Group, is investing $75 million in Ukraine’s leading agricultural producer Mriya to help the company double its grain production, cultivate more agricultural land, generate employment, and strengthen the country’s agricultural sector, a vital engine for sustained economic development.
Dragon Capital, a leading Ukrainian investment bank, acted as sole financial advisor to Mriya on the transaction.
IFC’s financing package will consist of a $25 million renewable working capital facility, a $25 million loan for capital expenditure, and an option to buy warrants of up to $25 million. The funds will be used to build three grain silos, purchase new farm machinery, acquire land lease rights, and produce grain for sale to local clients and international traders.
"We are glad that IFC continues its investments into the agricultural sector of Ukraine, and we hope that this decision will give a positive signal to international capital markets," said Andrei Pivovarsky, Director of Investment Banking with Dragon Capital.
"We are also confident that the new financing from IFC will allow Mriya not only to strengthen its leadership position in the agricultural market, but also promote the enormous potential of agriculture in our country."
About Mriya
Mriya was founded in 1992 as a small farm with around 50 hectares of land. The company is now Ukraine’s seventh-largest primary agricultural producer with a proven track record of growing wheat, barley, sugar beet, rapeseed, potatoes, and other crops. Mriya’s operations are concentrated in the Ternopil, Khmelnytsky, Chernivtsy, and Ivano-Frankivsk regions of Western Ukraine. For more information please visit www.mriya.ua.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing capital for private enterprise, and providing advisory and risk mitigation services to businesses and governments. The organization’s new investments totaled $14.5 billion in fiscal 2009, helping channel capital into developing countries during the financial crisis. For more information please visit www.ifc.org.
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