IFC as implementing entity of the Blended Finance Component of the Economic Resilience Action Program for Ukraine for FY23–24 (ERA Program) from the European Fund for Sustainable Development Plus, potentially the United Kingdom of Great Britain and Northern Ireland, IFC Canada Facility for Resilient Food Systems and other sources of blended concessional finance is expected to provide approximately US$60 million in the form of a first loss guarantee (“blended concessional finance co-investment”). High country and project-specific risks create a mismatch in the risk and return profile that constrains IFC’s participation in the Project. Risk mitigation provided by blended finance is helping de-risk the Project, enabling IFC to overcome its participation constraints and provide the required financing for the Project. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be approximately 4.5% of the total Project cost. This estimate is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost and profit; or a negotiated price) and (ii) the “concessional price” being charged by the blended concessional finance co-investment. Further details and historical information on estimated subsidy levels in IFC’s blended finance portfolio can be found at: www.ifc.org/blended finance. As is the case with all of IFC’s blended concessional finance co-investments, this Project has been assessed against the Enhanced Blended Concessional Finance Principles for Development Financial Institution Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles and IFC’s blended finance approach and governance can also be found at: www.ifc.org/blended finance.

190.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	190.0
Equity

* These investment figures are indicative

The Project is anticipated to help address the food security crisis both within Ukraine and globally by sustaining and supporting the Company’s production and export of poultry and other agricultural products. The Project is expected to also sustain jobs and livelihood of employees of the Company and enable MHP to continue having a significant impact on Ukraine’s agribusiness value chain. The WTE plant component of the Project is expected to help promote the use of renewable energy sources and demonstrate the feasibility of biomethane production in Ukraine.

Financial additionality will be through critical support in the form of long-term debt to the Company, in the context of contracted availability of liquidity and long-term financing in Ukraine The proposed investment is part of the ERA Program, which aims to provide essential support to Ukraine’s private sector, including liquidity support to private sector companies in Ukraine that play a critical role in preserving jobs, exports, and fiscal revenues and providing the population with essential goods and services. The non-financial additionality will be through non-commercial risk mitigation and standard setting to support the Company in aligning with good international industry practices in line with IFC Performance Standards through implementation of the Environmental and Social Action Plan (ESAP).

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.