Denmark’s Axzon to invest up to EUR 54 Ml in developing its agricultural business in Ukraine
The International Finance Corporation (IFC) will disburse up to EUR 54 Ml to the big group Axzon, which raises pigs and processes meat in Poland and Ukraine, including $23 Ml to be invested in its stock. The corresponding investment agreement was signed in Kyiv. Axzon spokesman Tom Axelgaard said the funding would be spent on expanding operations in Ukraine, where it is represented by the company Danosha, and on building three biogas plants in Poland. The investment counsel for the deal was the investment company Dragon Capital.
“Already now, Axzon is Poland’s second largest pork producer and top producer of biogas energy. We are standing on the threshold of a still greater expansion, and the IFC money will help us grow further,” T. Axelgaard said. The Axzon representative added that the company is also negotiating the possible purchase with nearly ten Ukrainian farms. Rufat Alimardanov, the IFC’s country manager for Ukraine and Belarus, noted that this is the fifth agricultural project in the current financial year (started July 1, 2012), with the total amount of these projects approximating $200 Ml. Overall, agricultural projects account for roughly 40% of the corporation’s investment portfolio. The IFC has started some $280 Ml worth of projects in Ukraine in FY 2013 against $156 Ml in FY 2012. $55 Ml of the 2013 amount was got from other banks. Reportedly, the above-mentioned project is sponsored by the Danish holding company Polen Invest A/S owning 99.76% of Axzon. The former is in turn owned by 90 Danish pig raisers and their families. The project’s total cost is estimated at EUR 133 Ml. Apart from the IFC money, it is expected to be financed from loans and internal monetary resources. Supposedly, the raised money will allow Axzon to expand its business not only in Ivano-Frankivsk region but also throughout Ukraine.