25 Aug 2023 14:00

Ukraine's MHP may receive loan of up to $30 mln from IFC

MOSCOW. Aug 25 (Interfax) - The International Finance Corporation (IFC) of the World Bank Group intends to resume cooperation with the MHP agricultural holding, Ukraine's largest producer of chicken, and to issue a loan of up to $30 million to its subsidiary Vinnitsa Poultry Farm LLC to finance the upgrade and capacity expansion of an agricultural-waste-to-energy plant.

The IFC Board of Directors plans to review this project at a meeting on September 19, 2023, Ukrainian media said, citing information on the IFC website.

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 liquefied biomethane production.

The total cost of the project is estimated at $52 million. MHP will finance the rest of the project cost with its own funds. The project is expected to be supported by a $15 million guarantee from the European Fund for Sustainable Development Plus, the United Kingdom and other donors.

The investments under the project are planned to be made in MHP's biogas plant located in the village of Vasilyevka, Gaisin district, Vinnitsa region, which was put into operation in 2019 and is Ukraine's largest such facility with a capacity of 12 MW.

The first stage of the project envisages an upgrade of the existing capacity to produce 14,000 tonnes of liquefied biomethane per year, while the second stage will see this capacity reach 20.5 MW.

If approved by the Board of Directors, it will be the IFC's sixth investment in MHP since 2003, the last of which was opened in 2014 and closed in 2019.

MHP is Ukraine's largest chicken producer and also makes processed meat products, grows grains and produces sunflower oil. MHP supplies chilled chicken half carcasses to the European market that are subsequently processed, including at group plants in the Netherlands and Slovakia. The holding finalized the deal on the acquisition of Slovenia company Perutnina Ptuj in 2019.

MHP's founder, majority shareholder and CEO is Ukrainian businessman Yury Kosyuk.

MHP reported revenue of $745.6 million in the first quarter of 2023, 34.7% up from Q1 2022. The company's net income was $49.07 million and its net loss stood at $108.25 million (FX translation gains stood at $4.18 million versus FX translation losses of $95.32 million).