The IFC is providing US$50mn in equity and US$30mn in long-term debt to increase the productive capacity of Belgrankorm Group, a leading crop and meat producer in Russia.
IFC investment will support a new poultry project and help build a feedmill in the Veliky Novgorod region. The group's existing poultry, pig, and dairy farms, as well as its processing facilities in the Belgorod region will be expanded and modernised. The company aims to double its meat and milk production and purchase new farm machinery to cultivate additional land to boost grain production.
The financial contribution is also geared towards introducing best practices in corporate governance and environmental and social sustainability. As a partner and shareholder, IFC will advise Belgrankorm on corporate governance, international financial reporting standards and environmental and social management systems. IFC will also help the company improve livestock performance by introducing best practices in veterinary, nutrition, and livestock management.
"We welcome IFC as a new shareholder and financier. This strategic partnership serves as recognition of our company and growth strategy. It will spur our development and support our commitment to implementing international standards of doing business,” comments Alexander Orlov, owner of Belgrankorm.
“The agribusiness sector is a strategic priority for IFC. We are delighted to work in partnership with Belgrankorm and help expand the company"s production capacity by using modern technologies that maximize efficiency and apply highest environmental and food safety standards,” comments Oscar Chemerinski, IFC director for agribusiness.
Last Updated June 06, 2008
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