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€35 million project financing for pig farmer in Ukraine

PROGRAM / PROJECT NEWS 

Project to improve operational efficiency, biological security, animal welfare and develop new biogas facilities 

8 February 2014 – London – The European Bank for Reconstruction and Development (EBRD) has announced that it is stepping up its investments into the Ukrainian agribusiness sector, which received over €160 million from the Bank in 2013 alone. The Bank is extending a €35 million loan to a major Ukrainian pig farming company Danosha, well established in Ukraine since 2004. The proceeds will be used to expand Danosha’s operations, improve its waste disposal and restructure its balance sheet. (photo courtesy of Danosha website)

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With the help of the EBRD support, the company will improve its biological security and animal welfare standards in line with EU regulations. The loan will also support the construction of two biogas plants at the existing farms in Ivano-Frankivsk region (western Ukraine), which, once completed, will jointly generate over 15,000MWh electricity and heat per year. It is also expected that the biogas plants will help significantly reduce GHG emissions at the sites.

In the context of the project and its activity in the sector, the EBRD jointly with the Food and Agriculture Organization of the United Nations (FAO) has commissioned two specialised studies, which will look at the state of the pig sector as well as the animal welfare in the region.

Danosha, a Ukrainian pig farming company belonging to Danish investors, was established in June 2004 in Kopanky village in the suburbs of Kalush city (Ivano-Frankivsk region). Danosha is a sister company to Poldanor in Poland. The company owners have many years of experience in developing and managing modern, efficient agricultural enterprises in Denmark, Poland and other Northern European countries. More about the company can be found at http://www.danosha.com.ua/en

The EBRD is the largest financial investor in Ukraine. As of 1 January 2014 the Bank had committed €8.7 billion (US$ 11.9 billion) through 321 projects in Ukraine. For more information about EBRD projects in Ukraine, go to http://www.ebrd.com/pages/country/ukraine.shtml

The European Bank for Reconstruction and Development (EBRD) was established in 1991 to nurture the private sector in central and eastern Europe and ex-soviet countries. The EBRD is the largest single investor in the region. Owned by 61 countries and two intergovernmental institutions, the EBRD provides project financing for banks, industries and businesses.  The EBRD invested €8.7 billion in 388 individual projects in 2012.  For more information about the bank, visit http://www.ebrd.com/index.htm

Based on EBRD news story by Anton Usov

Source: EBRD