PROJECT

Projects

Summary of Investment Information

Project Number

36344

Company Name

BayerFarmersRSF

Date SPI Disclosed

May 18, 2015

Country

Ukraine

Region

Europe

Projected Board Date

Jun 19, 2015

Environmental Category

B - Limited

Status

Completed

Last Updated Date

Jun 12, 2021

Department

Regional Industry MAS LAC & EUR

Industry

Agribusiness and Forestry

Previous Events

Approved : Jun 29, 2015
Signed : Sep 30, 2015

Sector

Diversified Edible Agricultural Crops Production

Project Description

The proposed IFC project entails a risk sharing facility (“RSF”) in partnership with Raiffeisen Bank Aval (“RBA” or the “Bank”) on a portfolio of up to US$60 million equivalent with IFC’s exposure of up to US$30 million. The portfolio will consist of receivables generated by Bayer Ltd. Ukraine (“Bayer Ltd” or the “Company”) on the sale of crop protection products and seeds to existing and new farmer clients. The proposed project is a repeat investment based on the existing facility entered into in 2011 (project no. 30595).

RBA is a universal commercial bank, ranked 7th largest in Ukraine in terms of total assets as of end 2014, and offering a full range of banking services to corporate customers, micro, small and medium enterprises (“MSMEs”) and individuals. The Bank has a network of almost 700 outlets across Ukraine and has extensive presence in agri-finance. Raiffeisen Bank International (“RBI”) is the controlling shareholder with 96.5% ownership. The remaining 3.5% is owned by a large number of minority shareholders. Both RBA and RBI are long-standing IFC partners.

Bayer Ltd is a Ukraine-registered entity fully-owned by Bayer AG. Bayer Ltd is a main input supplier of crop protection products (mainly pesticides, herbicides and fungicides) in Ukraine. The Company works extensively with small and medium-sized farmers. Bayer Ltd operates under the CropScience division of Bayer AG.

Associated Advisory Engagement

"AS Project (no. 592348) Name: Sustainable Development of Small and Medium Scale Farmers in Ukraine The overall goal of the project is to increase the productivity and efficiency of agricultural producers in Ukraine in a sustainable manner by strengthening local distributors and extension services so that they will be able to provide better and more effective services and advice to farmers. The Project aims to improve access to knowledge, financing and markets by around 20,000 SME farmers in Ukraine."

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation