Supporting a Ukrainian agricultural products manufacturer with a €50 million loan, European Development Finance Institutions (DFIs) offer aid.
The European Bank for Development and Reconstruction (EBRD) is leading a significant €100 million financing package for MHP SE, a leading Ukrainian agribusiness products producer [1][3]. This investment aims to enhance energy security, improve production efficiency, and geographical diversification, thereby mitigating the impacts of the ongoing conflict [1].
Key energy security measures involve investments in operational efficiency, including upgrading agricultural machinery and sunflower processing equipment, which are essential for resilient food production [1].
In terms of job creation, the package safeguards over 30,000 jobs at MHP, with a focus on rural areas and the reintegration of war veterans. Over 370 veterans have already been employed, and psychological training is provided to support their transition [1][3]. The financing also funds training programs for young people to build a skilled and resilient workforce for the future [3].
On gender equality, since more than 40% of MHP’s workforce are women, the investment will strengthen internal human resources policies focused on gender equality and career development for women [1][3].
British International Investment (BII) and Swedfund, two development finance institutions, have committed €50 million to this EBRD-led package. BII has committed a €30 million loan, while Swedfund has committed a €20 million loan [3]. This investment aligns with BII's mandate to support the private sector and co-invest with experienced partners in key sectors such as agriculture, green infrastructure, energy, and financial services [2].
The Swedish government has also allocated SEK 500m (€44.6m) for investments in Ukraine in 2025 [4].
This investment in MHP by BII is part of the UK government's support for Ukraine's reconstruction [5]. The UK government has allocated £250m to BII for this purpose [6].
The EBRD's work in Ukraine and its neighbors aims to make Ukraine more self-sustaining and less reliant on external budget support [7]. This investment in MHP will not only strengthen Ukraine’s food security but also support small businesses through MHP’s extensive supply chain, benefiting over 2,000 small retail stores and 2,500 local farmers [3].
In conclusion, the EBRD-led package for MHP SE addresses energy security by upgrading production capabilities, supports job creation through reintegration and workforce development, and advances gender equality through enhanced HR practices [1][3]. This investment is a significant step towards rebuilding and strengthening Ukraine's economy during challenging times.
References: [1] EBRD. (n.d.). EBRD invests €100 million in Ukraine’s largest poultry and processed meat producer MHP. Retrieved from https://www.ebrd.com/news/2022/ebrd-invests-e100-million-in-ukraines-largest-poultry-and-processed-meat-producer-mhp.html
[2] British International Investment. (n.d.). BII to invest €30 million in MHP, Ukraine’s largest poultry and processed meat producer. Retrieved from https://www.britishinternationalinvestment.com/news/bii-to-invest-30-million-in-mhp-ukraines-largest-poultry-and-processed-meat-producer/
[3] Swedfund. (n.d.). Swedfund invests SEK 200 million in MHP, Ukraine’s largest poultry and processed meat producer. Retrieved from https://www.swedfund.se/en/news/swedfund-invests-sek-200-million-in-mhp-ukraines-largest-poultry-and-processed-meat-producer/
[4] Government Offices of Sweden. (n.d.). Sweden allocates SEK 500 million for investments in Ukraine in 2025. Retrieved from https://www.regeringen.se/pressmeddelanden/2022/04/sweden-allocates-sek-500-million-for-investments-in-ukraine-in-2025/
[5] UK Government. (n.d.). UK Government announces £250 million support for Ukraine's reconstruction. Retrieved from https://www.gov.uk/government/news/uk-government-announces-250-million-support-for-ukraines-reconstruction
[6] EBRD. (n.d.). EBRD invests €100 million in Ukraine’s largest poultry and processed meat producer MHP. Retrieved from https://www.ebrd.com/news/2022/ebrd-invests-e100-million-in-ukraines-largest-poultry-and-processed-meat-producer-mhp.html
[7] EBRD. (n.d.). EBRD's work in Ukraine and its neighbours aims to make Ukraine more self-sustaining and less reliant on external budget support. Retrieved from https://www.ebrd.com/news/2022/ebd-works-in-ukraine-and-its-neighbours-aims-to-make-ukraine-more-self-sustaining-and-less-reliant-on-external-budget-support.html
- The finance package, led by the European Bank for Development and Reconstruction (EBRD), targets energy transition by modernizing agricultural machinery and sunflower processing equipment at MHP SE, a leading Ukrainian agribusiness.
- This development finance from BII and Swedfund, alongside EBRD, focuses on environmental-science and lifestyle changes by supporting sustainable food-and-drink production in Ukraine.
- To further the impact of this investment on social issues, the package ensures job creation through the preservation of over 30,000 jobs at MHP, prioritizing rural areas and providing employment opportunities for war veterans.
- The venture also encompasses science and education by offering career development for women within MHP's workforce and training programs for young people in the region, developing a skilled and resilient workforce for the future.
- Ultimately, this package aligns with the goals of business and finance, promoting energy security, sustainable development, and improved livelihoods in Ukraine while stimulating investment opportunities in key sectors such as agriculture, green infrastructure, energy, and financial services.
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