IFC Approves EUR 54m of Financing for Axzon Group
The International Finance Corporation (IFC), a member of the World Bank Group, will provide financing for Axzon Group, one of the largest pork producers in Eastern Europe with operations in Poland and Ukraine. Dragon Capital acted as exclusive financial advisor to Axzon Group in this transaction.
IFC’s total funding will be about EUR 54m and made available in the form of debt financing and equity. The investment is mainly aimed at expanding the core business of Axzon Group in Ukraine, as well as at increasing the production of heating and electricity from renewable sources at the Group’s biogas plants in Ukraine and Poland.
“This transaction is exceptionally successful both for Axzon Group and for the IFC, as it perfectly fits their overall philosophy aimed at developing production of high quality food products and increasing the use of alternative energy sources while complying with strict environmental standards in the production process. IFC remains committed to its principles of investing into industry leaders which it identifies based on both market share as well as operating and financial performance and corporate excellence,” said Yuriy Astakhov, Director, Investment Banking, Dragon Capital. “This investment will strengthen Axzon Group’s leading position in Ukraine and Poland by expanding the scale of its efficient business model and will deliver a positive signal to investors exploring the agricultural sector in the region.”
Axzon Group currently manages more than 30 pig farms in Poland and 5 in Ukraine. It produced over 70,000 tonnes of pork in live weight in 2012. Axzon Group is also the largest operator of biogas plants in Poland, with construction of similar facilities proceeding at the Group’s pig farms in Ukraine (Danosha company).
About Axzon Group
Axzon Group (www.axzon.eu) was founded in 1994 in Poland by an association of Danish farmers with the goal of developing large-scale pork production in a rapidly growing market using Danish know-how and expertise. The Group entered Ukraine in 2003 through the acquisition and modernization of an old farm in Kopanka, Ivano-Frankivsk region. Axzon Group is one of the three largest producers of pork in Poland and Ukraine. Its operations, guided by the principle of minimizing negative impact on the environment, include pig breeding, meat processing, plant growing, feed production, and energy production at biogas plants.
About the International Finance Corporation (IFC)
IFC (www.ifc.org), a member of the World Bank Group, is the largest global development institution that is focused exclusively on the private sector. IFC helps developing countries achieve sustainable growth by financing their investments, mobilizing capital in the international financial markets, and by providing advisory services to representatives of businesses and governments. In 2012, IFC’s investments reached a record high of more than $20 billion, helping the private sector to create jobs, stimulate innovation and to overcome major global development challenges.
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