V.V. KISCHENZI LTD
Status: Approved 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
Kischenzi Ltd. (“Kischenzi”, the “Borrower” or the “Company”) is an integrated farm consisting of agricultural, dairy, vegetable and pig farming activities and located in the Central part of Ukraine, the Cherkasy region, on the west side of the Dnieper River. Kischenzi is an existing FMO client since 2009 and so far, our experience is satisfactory. Kischenzi has a strong and international management team with a responsible manager for each business area.
What is our funding objective?
This proposed USD 8 million loan is aimed to provide Kischenzi with funds that enables the Company to expand its milk production farm. The planned expansion will increase the milking capacity of extra grade milk by 120% to 2 million kg/liters per month in 2019. Extra grade milk can be processed into high-end dairy products.
Why do we fund this investment?
The proposed expansion of the dairy farm, (the “Project”) will consist of (i) an extension of one existing- and construction of two new cowsheds, (ii) purchase of 1.500 heifers, (iii) construction of a modern rotary milking parlor based on best available technique (“BAT”) and (iv) purchase of feed- and forage and other machines and works related to the dairy farm. The relationship with Kischenzi fits the Agribusiness, Food and Water strategy where we aim to focus on (Dutch) companies within the Agribusiness value chain, with a well-established operational and financial track-record and professional management, combined with a high market demand and a robust sustainable business model.
What is the Environmental and Social categorization rationale?
E&S risk category B+ is based on the expansion of the dairy farm and related construction of the new stables and milking parlour, the large scale of the agricultural operation and animal welfare. Relevant are the IFC Performance Standards 1 - 4 (IFC PS): Risk Management, 2 Labor, 3 Resource Efficiency, 4 Community and 6 Biodiversity. Land is leased on a willing lessee, lesser basis, there are no indigenous peoples nor is there cultural heritage in the area the company operates, therefore the Performance Standards 5, 7 and 8 are not triggered. Applicable are the General IFC EHS Guidelines and annual crop and mammalian livestock production guideline(s).
More investments
| Date | Total FMO financing |
|---|---|
| 5/18/2022 | EUR 0.05 MLN |
| 2/24/2022 | EUR 0.03 MLN |
| 7/27/2021 | USD 15.00 MLN |
| 7/26/2021 | USD 5.50 MLN |
- Region
- Europe & Central Asia
- Country
- Ukraine
- Sector
- Agribusiness, Food & Water
- Publication date
- 3/29/2018
- Effective date
- 6/29/2018
- Total FMO financing
- USD 8.00 MLN
- Funding
- FMO NV
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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+