IFC to lend over EUR 30 mln for financing of Ukrplastic
IFC, a member of the World Bank Group, is providing a financing package of over EUR 30 million to IMMER Group, a leading Eastern European producer of flexible packaging, represented by PJSC Ukrplastic in Ukraine, to support export-led economic growth.
A respective loan agreement was signed in January 2018, IFC told Interfax-Ukraine.
IFC's financing package, which includes 15 million euro in debt mobilized from other lenders, is designed to support growth of IMMER Ukrplastic, Ukraine's largest manufacturer of flexible packaging materials whose production facilities are based in Kyiv.
"IFC's engagement helps the IMMER Group's broader effort to open new markets and help diversify its exports to the European Union," IFC said in an announcement.
"IFC's financing comes at a crucial time. Ukraine's economy is returning to growth and we are looking to capitalize on this, growing in different market segments, launching new, innovative products for the food processing and agribusiness sector, and diversifying our export markets," said Irina Mirochnik, IMMER Group president.
IFC says the project will contribute to boosting food security and helping to improve sustainable agricultural practices by providing high quality food packaging materials and new products to the agricultural sector, including biodegradable mulch and silage films.
IFC had previously specified that IMMER Group is a 100% family business owned by Irina Mirochnik and her three daughters. The main asset of the group is Ukrplastic, which occupies 11.3 hectares in Kyiv with 34 facilities whose total area is 74,000 square meters. It employs 1,447 people.
In addition, IMMER Group in February 2017 launched a new production of IMMER Digital in Ventspils (Latvia) with 31 employees to increase its share in the European market, according to IFC. This facility is engaged in such limited operations as digital printing, lamination, the manufacture of bags and labels. The group also includes IMMER Design Studio in Riga (Latvia).
In addition, the group has 15 warehouses in Kyiv, 11 warehouses in Russia, Europe and across the rest of Ukraine.
Ukrplastic in 2016 boosted net revenue by 9.5%, to UAH 2.129 billion. Its net profit was UAH 129.51 million, whereas it was in the red in 2015 with net loss estimated at UAH 261.15 million. There is no information about financial results in 2017.
By the end of 2016, Farsiko Enterprises Limited owned a 99.7756% state, whereas by the end of 2017, it was held by IMMER Limited (both Cyprus-based), according to the information disclosure system of the National Securities and Stock Market Commission of Ukraine.