EBRD grants Ukrainian Nestle subsidiary 42 mln euro loan for new production

MOSCOW. Sept 7 (Interfax) - The European Bank for Reconstruction and Development (EBRD) has provided a 42 million euro loan to Nestle's Ukrainian subsidiary, Volynholding LLC, to finance the development of new production, Ukrainian media said, citing a report on the bank's website.

"The project will contribute to the development of a new production site in the western part of Ukraine to create a center for food production in the region," the press release says.

Under the terms of the loan, Nestle will be required to provide an annual report on a number of key issues relevant to the project.

The Nestle Ukraine website says that Nestle began its activities in Ukraine in 1994 with the opening of a representative office. Nestle has three production sites and a service center in the country. Nestle's businesses there incclude: coffee and drinks, confectionery, culinary (cold sauces, seasonings, soups, ready-to-eat foods), baby and special food, breakfast cereals, and pet food.

Volynholding produces ketchups, mayonnaise, sauces, marinades, mustard, dressings and spices under the Torchin brand. In 2022, the company's revenue was UAH 1.963 billion against UAH 1.716 billion the year before, an increase of 14.4%. I also doubled net profit to UAH 13.217 million.

The official exchange rate as of September 7 is UAH 36.57/$1.