Supporting a Ukrainian agricultural business producer with a €50 million loan, European Development Finance Institutions provide funding.
In a significant move to bolster Ukraine's economy during challenging times, the European Bank for Reconstruction and Development (EBRD) has led a €100 million investment in MHP SE, a leading Ukrainian agribusiness producer. This investment package, complemented by €20 million from Swedish development institution Swedfund and €30 million from British International Investment (BII), is designed to safeguard jobs, enhance resilience, and promote gender equality in Ukraine's food and agricultural sectors.
Key details about the investment and its impact include:
- Job safeguarding and workforce support: MHP SE employs over 30,000 people in Ukraine, with more than 40% being women. The funding helps protect these jobs and supports reintegration of war veterans into the workforce, including psychological training and career development initiatives.
- Resilience building focus: Capital from the financing package will be directed toward improving production efficiency, energy security, operational improvements, and geographic diversification to mitigate ongoing conflict impacts. Specific plans include investments in sunflower processing equipment and agricultural machinery upgrades.
- Promoting gender equality: BII has highlighted that some capital will enhance MHP’s HR practices to promote gender equality and career growth opportunities for women.
- Sectoral importance: As Ukraine’s largest poultry and processed meat producer and a key player in sunflower oil, MHP SE’s stability and growth are crucial for national food security and global food supply chains.
This package fits within broader international financial support efforts aiming to stabilize Ukraine’s economy and promote recovery amid wartime challenges. The EBRD and partners’ support for small and medium-sized enterprises (SMEs), infrastructure, and renewable energy further underline comprehensive resilience strategies across sectors.
In addition, Swedfund, a Swedish development institution, has allocated SEK 500m (€44.6m) for investments in Ukraine, with a focus on the agri-food sector, development finance, and financial inclusion. Meanwhile, IIX, an impact investment firm, has launched its seventh Women's Livelihood Bond with a $60m tranche, aiming to empower women in various sectors.
The UK government has also pledged a £250m budget to British International Investment (BII) to support Ukraine's reconstruction. BII's investment in MHP aligns with its mandate to support the private sector and co-invest with experienced partners in key sectors such as agriculture, green infrastructure, energy, and financial services.
The EBRD's work in Ukraine and its neighbors is essential, as it supports the real economy, fosters the growth of the private sector, and promotes reforms in line with the EU’s accession agenda. By investing in MHP SE, the EBRD aims to create jobs, sustain livelihoods, provide tax revenues, and contribute to a healthy economy, even during wartime. This strategic investment will strengthen both Ukraine's food security and global supply chains by supporting MHP’s ability to maintain and expand exports to over 70 countries, including thousands of small businesses the company supports, such as more than 2,000 small retail stores and 2,500 local farmers.
- The EBRD's €100 million investment in MHP SE, a leading Ukrainian agribusiness producer, is part of a comprehensive financial support package that also includes contributions from Swedfund and BII, aiming to promote financial inclusion, develop the industry, and foster investing in businesses.
- In accordance with its mandate, BII's investment in MHP SE, aligns with its focus on supporting the private sector, particularly in key sectors such as agriculture, green infrastructure, energy, and financial services, with the goal of promoting financial inclusion and development finance.
- The EBRD's strategic investment in MHP SE will not only contribute to Ukraine's food security and global supply chains by supporting exports to over 70 countries, but also by creating jobs, sustaining livelihoods, providing tax revenues, and fostering financial inclusion for businesses like small retail stores and local farmers.
