The FINANCIAL -- IFC, a member of the World Bank Group, is providing its first loan in local currency, the hryvnia, to boost Ukraine’s retail sector, support growth and create jobs.
IFC will provide an eight-year loan worth around 400 million hryvnias (about $15 million) to help Auchan Retail finance its long-term investments in Ukraine to support the development of local supply chains and to help enhance standards in the domestic retail market, according to IFC.
“This is a landmark transaction for our local currency program in Ukraine,” said Jason Pellmar, IFC’s regional head for Ukraine and Belarus. “We are now ready to roll out customized, local currency products to Ukrainian clients in various sectors and to extend the maturities of hryvnia financing. We deem this vital to modernize the economy and to support growth.”
“IFC’s new investment will help us mitigate foreign currency risks. It is also a strong boost to the retail sector in Ukraine, as we continue to work together on food safety and help open new opportunities for smaller producers,” said Michel Larivière, financial director of Auchan Retail Ukraine.
IFC has been a partner of Auchan in Ukraine since 2013, when it provided a $30 million loan to the company as part of broader effort to develop food retail. Besides financing, IFC’s food safety advisory team also trained and coached over 30 of the company’s SME suppliers in meat, dairy, fish, egg, bakery, and prepared food categories.