OREANDA-NEWS. July 01, 2010. MHP S.A. (“MHP” or the “Company”, LSE ticker: “MHPC”), one of the leading agro-industrial companies in Ukraine focusing on the production of poultry and the cultivation of grain, announces the signing of a Loan Agreement with IFC (“International Financial Corporation”), a member of the World Bank Group. The Loan Agreement provides MHP with USD 61.25 million in financing to help the Company expand its grain-farming operations in Ukraine.

Under the Loan Agreement, the third transaction between IFC and MHP, IFC will provide a USD 50 million loan to support MHP’s working capital requirements to support further increases in its land bank. IFC will also provide up to USD 11.25 million through a partial credit guarantee, an innovative financing mechanism and the first of its kind by IFC in the Ukrainian leasing market. IFC’s guarantee will be provided to ING Lease Ukraine for agricultural machinery leased by MHP.

Commenting on the agreement with IFC, Yuriy Kosyuk, Chief Executive Officer of MHP, said:

“We are happy to have a long-standing relationship with IFC that serves to strengthen and support our expansion.. This latest transaction will enable us to continue to implement our vertical integration strategy by expanding our operations to deliver high-quality products for the domestic market.”