The project is sponsored by MHP. Mr. Yuriy Kosyuk, a local entrepreneur, who owns 100% of WTI Trading Ltd, which in turns owns approximately 66% of MHP. A remaining 34% is floated on the London Stock Exchange. Mr. Kosyuk graduated from the Ukrainian Food Institute in 1991 and established MHP in 1998. Prior to launching his poultry business, Mr. Kosyuk was involved in various business activities, including grain and retail trading, food processing.

IFC is to provide an A Loan into the Project of up to US$50 million from its own account for working capital financing.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

The main location of the project is in rural area of Vinnytsia region in Ukraine.

The investment program will help MHP expand its domestic and export sales. The proposed Loan will support the Company''s working capital requirements for the successful implementation of MHP''s growth plans, which will have a significant impact on the local economy. Benefits include:
- SMEs: MHP supports a network of 2,600 SMEs, a franchise network of small shops selling MHP branded poultry, which will significantly increase with the implementation of the Vinnytsia project. Significant number of these SMEs operate in rural locations often underserved in terms of basic food retail reach.
- Employment: The Company currently employs 24,800, including 9,000 females. As a result of the investment program, employment will increase by an additional 8,000 workers.
- Food security: MHP''s competitive cost structure will help the company provide competitively priced chicken in Ukraine as well as in importing countries in Africa, Middle East and Asia, thereby contributing to food security in those regions.

(i) Long-term partnership with IFC which would facilitate its growth through continued advice while facilitating the renewal of its bond in 2015;
(ii) IFC''s political and country risk cover in the context of political and economic volatility would encourage MHP to proceed with its investment plans;
(iv) IFC''s advisory services in resource efficiency and IFC''s assistance in certification of MHP farms to Global Good Agricultural Practice would set the standard for more environmentally friendly farming operations in Ukraine.

IFC’s environmental and social review reveals that this investment will have impacts that must be managed in a manner consistent with the IFC Performance Standards (PS) on Social and Environmental Sustainability listed above. Impacts related to PS5: Land Acquisition and Involuntary Resettlement, PS6: Biodiversity Conservation and Sustainable Management of Living Natural Resources, PS7: Indigenous People and PS8: Cultural Heritage are not expected with this investment for the following reasons. Any future land acquisition will only be done through willing seller / willing buyer negotiations. Project operations will not have direct adverse impacts on biodiversity as crop production is located on consolidated agricultural areas; the local population is not known to include indigenous people communities; the likelihood of finding of unknown cultural heritage, particularly archeological resources, within the existing agricultural and industrial zones is low.

This proposed investment is expected to have limited and site-specific environmental and social impacts and none is expected to be significant. Those impacts can be avoided or mitigated by adhering to recognized performance standards, procedures, guidelines and design criteria as described in the following sections. Thus, this is a Category B project in accordance with IFC’s Environmental and Social Sustainability Policy. This categorization is in accordance with other similar type of projects within the sector. The project is designed to avoid, minimize and manage environmental and social risks and impacts of the Company’s operations in compliance with applicable IFC’s Performance Standards and World Bank Group (WBG) General and sector-specific (Crop production; Poultry production and Poultry Processing; Mammalian Livestock Production; Vegetable Oil Processing; Meat Processing) Environmental, Health and Safety (EHS) Guidelines.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.