The project sponsor is the Huta family (the “Sponsors”), who founded Mriya in 1992 and control it till this day. The head of the Huta family, Ivan Huta, a well-respected Ukrainian businessman, and his wife, Klaudia Huta, Ivan and Klaudia Huta established Mriya on 50 hectares of land, after having worked for eight years at a state farm. In 2002, Andriy and Mykola Huta, the sons of the founders, joined the family business after completing their education in Ukraine and abroad. Following a private placement on the Entry Standard of the Frankfurt Stock Exchange in 2008, the Sponsors collectively own 80% of Mriya’s Cyprus-based holding company that fully controls all of Mriya’s Ukraine-based operating companies, with the remaining 20% owned by over 20 institutional investors.

The total project cost is $90 million. The Project will encompass financing of agricultural commodities grown by Mriya as well as the purchasing of seeds, fertilizers, CPPs, fuel and other costs related to work in progress.

35.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	35.0
Equity

* These investment figures are indicative

The project will allow Mriya to expand its farming operations and grain storage infrastructure in the Ternopil, Ivano-Frankivsk, Chernivtsi and Khmelnitsky regions, which are among the poorest, primarily agricultural, regions of Ukraine.

IFC''s financing will contribute to the development of a large-scale modern farming operation which will improve land productivity and have a demonstration impact on other neighboring farms. Mriya''s land and operations are located in Western Ukraine in the Ternopil, Ivano-Frankivsk, Chernivtsi and Khmelnitsky regions. These four regions are amongst the poorest regions in the country. Development impact of the project will be as follows:

Employment: Mriya has approximately 1,002 permanent employees and 623 seasonal employees. The project is expected to increase permanent employment to about 1700 and seasonal employment to about 900. In the western Ukraine where Mriya operates, employment opportunities are scarce. In addition to creating new jobs, Mriya is setting new employment standards in the region by providing benefits to its farm workers such food and housing.

Environmental and Social Standards: As part of the Environmental and Social Action Plan (ESAP), Mriya will implement an ESMS to provide a structured framework to identify and act on environmental and social risks and opportunities in the management of its agricultural operations as well as down-stream in the agricultural value chain, in the operations of the Sponsor-owned affiliated sugar beet processing plants.

Private Sector Development: Mriya sells its products to a well diversified base of final customers and traders. Among them, there currently are about 55 MSME distributors of mainly potatoes, buckwheat, and corn, for final sales on the domestic market. On the purchasing side, Mriya relies on about 27 MSME suppliers, in addition to several large key ones, for deliveries of fertilizers, plant protection chemicals, and spare parts.

Source of financing: The IFC facility will allow Mriya to secure part of its large and growing financing needs at the time when available local financing is scarce;
Long-term partnership: Mriya has made a strategic decision to build relationships with steady and long-term financiers such as IFC and EBRD that have extensive emerging markets experience and will stay the course alongside their partners; By partnering with IFC, the Company will be able to enhance its risk profile. Mriya is expected to benefit from its on-going relationship with IFC during a future listing on a major stock exchange.
Provider of Technical Expertise and Global Knowledge: IFC will continue to provide technical expertise and support to the Company as it further expands. As an example, IFC has helped Mriya improve its energy consumption through an IFC funded energy audit intervention.

This is a category B project according to IFC’s Environmental and Social (E&S) Review Procedures. IFC’s E&S review has confirmed that the project must be managed consistent with the following IFC Performance Standards: PS1 (Social and Environmental Assessment and Management Systems); PS2 (Labor and Working Conditions); PS3 (Pollution Prevention and Abatement) and PS4 (Community Health, Safety and Security).

Key E&S issues include: capacity of the E&S management system to address potential environmental, occupational health and safety risks associated with further expansion of Mriya agricultural operations; compliance with national laws and regulations; labour conditions and terms of employment of Mriya’s permanent and short-time employees; implementation of Integrated Pest and Disease Management Plans; E&S aspects and occupational health and safety at the sugar plants that are the key in the sugar business value chain; waste and wastewater disposal.

Information about how these potential issues will be addressed by the Company is summarized in the Environmental and Social Review Summary (ESRS). Mriya is committed to implement all corrective actions identified in the E&S Action Plan (ESAP) to mitigate negative E&S impacts and risks associated with Mriya’s and affiliated sugar plants’ operations.

Upon implementation of the ESAP, the proposed project will comply with the E&S requirements of host country laws and IFC’s Policies, Performance Standards and industry specific guidelines.