POLYFARM UKRAINE LTD.
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Polyfarm Ukraine Ltd. is a 100% subsidiary of Ukrag Holding BV. At present, the shares of Ukrag Holding BV are held by Theeuwes Holding BV, ASN BV and Beheermaatschappij Chris Geene BV. Polyfarm’s main activities are (i) dairy farming and (ii) the cultivation of agricultural products such as grains, oil-yielding crops and sugar-beet on 5,500 hectares (with an ambition to grow to 10,000 hectares). Besides this, Polyfarm breeds calves (partially kept as own stock and partially sold) and small bulls (all sold). In June 2008, FMO/FOM extended to Polyfarm a USD 3 million subordinated term loan for the startup of its agricultural farm in the Ukraine.
What is our funding objective?
After a successful initial loan of USD 3 million, FMO provided a second loan of USD 1 million to Polyfarm. The first component of FMO’s additional USD 1 million financing was used for investments in a 4,000 MT storage shed, since storage capacity is extremely important for such an agricultural company as Polyfarm. Storage enables the company to sell its products later after the harvest for much better prices. The second component of the investment was related to improvements on and expansion of the dairy farm. Through the investment in the dairy farm (two new or reconstructed stables) all Polyfarm’s dairy cattle will be housed in one location. This is important for efficient herd-management, increased animal welfare and to further increase productivity.
Why do we fund this investment?
By funding this project, FMO supported this successful agricultural company in introducing best-practice environmental and social standards to this rural Ukrainian region. FMO also contributed to the revitalization of the three rural Ukrainian villages in which Polyfarm is located. FMO’s involvement was additional, as no commercial financing was available on terms in line with the financial markets.
- Website customer/investment
- http://www.theeuwesholding.com
- Region
- Europe & Central Asia
- Country
- Ukraine
- Sector
- Agribusiness, Food & Water
- Effective date
- 7/19/2013
- End date
- 2/15/2018
- Total FMO financing
- USD 1.00 MLN
- Funding
- Fund Emerging Markets
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B