Three major international organisations have partnered to provide a $480m financing package to Ukraine’s MHP.

The International Finance Corporation (IFC), the European Bank for Reconstruction and Development (EBRD) and the US International Development Finance Corporation (DFC) have funded the agri-food business to “maintain its operations and boost its sustainable power generation capacity, reducing its carbon footprint”.

The DFC is funding $250m, the IFC is providing $130m while the EBRD will cover $100m.

The $250m loan from DFC will be used to “refinance maturing debt and support the company’s poultry and grain production”, according to a statement.

The loan will also increase food production and storage and support its export capacity, while “mitigating the devastating effects of food insecurity exacerbated by the war”.

IFC – a member of the World Bank Group – has provided a $30m loan to upgrade and expand MHP’s “agricultural waste-to-energy” facility. The expansion should increase the company’s green power generation capacity, which is expected to reduce its carbon footprint.

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An additional $100m loan will help MHP’s financial stability by “refinancing its notes” due in May 2024.

Meanwhile, the EBRD is lending $100m to support the Ukrainian poultry group in “sustaining its financial resilience” by refinancing its Eurobonds.

“Improving food security is a priority for DFC in Ukraine and across the globe,” DFC chief operating officer Agnes Dasewicz said.

“A thriving Ukrainian agricultural sector is not only critical for sustaining the country but is equally important to global agricultural supply chains that have been disrupted by Russia’s invasion of Ukraine. DFC is proud to provide crucial financing to support Ukraine’s ability to supply global markets with essential staples that ensure the health and stability of many nations.”

The IFC’s funding is part of its $2bn Economic Resilience Action programme, launched last year to preserve economic activity and job creation amid Russia’s invasion of Ukraine.

Rana Karadsheh, the IFC’s regional director for Europe, said: “The international community remains committed to supporting Ukraine’s agribusiness sector, reinforcing its dedication to sustainability, and enhancing Ukraine’s economic resilience through private sector financing.

“This investment underscores our longstanding partnership with MHP and our commitment to helping the country build back greener and better.”

MHP recently published its results for the first half of its fiscal 2023 amid war-related challenges, which began last March. However, with the ongoing Black Sea grain saga, MHP described the situation as “highly fluid” and the outlook is “subject to extraordinary levels of uncertainty”.

For the six-month period, revenue increased to $1.56bn, up 35% year-on-year. Operating profit jumped by 100% to $152m. Adjusted EBITDA rose 42% to $218m.

Meanwhile, poultry production volume in Ukraine increased by 4% to 359,332 tonnes for the period.