IFC Financing Supports the Development of Ukrainian Food Retail Chain
London, IFC, the private sector arm of the World Bank Group and Emerging Europe Growth Fund (EEGF), a private equity fund managed by Horizon Capital and investing in Ukraine, today signed an equity investment agreement to each invest US$15 million in equity in Evrotek Group PLC, the holding company for a recently formed Ukrainian food retail chain operating under the trade name Fresh. The US$30 million investment will help the company with its expansion plans aimed at developing a modern food retail chain operating in Ukraine.
“I am very pleased about IFC’s investment in the project as part of the Investor Consortium. The Investors bring know-how, international best practice advice, and of course needed financing to the project,” said Mikhailo Veselsky, Evrotek’s Chief Executive Officer.
Evrotek Group PLC entered the food retail chain market in 2006 and is one of Ukraine’s newest retail store chains. The company’s expansion plan entails a total of 58 stores by 2010.
The success of the Fresh chain is important to the Ukrainian economy. The project will have a demonstration effect to the local retail sector of modern retailing methods. The project’s improvement and expansion of local food supply chains will have a positive effect on the development of Ukraine’s agribusiness sector, in keeping with IFC’s strategy for Ukraine Local people will benefit from lower consumer prices and better access to quality goods The project will also open employment opportunities for approximately 6000 people.
“IFC’s investment in the project will support the expansion and development of Ukraine’s retail sector. IFC’s involvement will also ensure compliance with its environmental and social performance standards, in particular with regards to safety and human resource management,” said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services.
Nena Stoiljkovic, IFC Director, Central and Eastern Europe, added, “IFC continues to support the growth of Ukraine’s private sector through developing partnership with local companies. IFC’s focus in Ukraine is on the agribusiness sector and all the elements of the value chain, including food retail. We are confident that our investment in Evrotek Group PLC will enable the company to raise its retailing practices up to international standards and improve access of consumers to quality goods and better retail services.”
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit www.ifc.org.
This news content was configured by WebWire editorial staff. Linking is permitted.
News Release Distribution and Press Release Distribution Services Provided by WebWire.