AVELLUM acts as Ukrainian legal counsel to MHP SE in connection with the recent loan financing from EBRD, IFC and DFC

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AVELLUM acts as Ukrainian legal counsel to MHP SE in connection with the recent loan financing from EBRD, IFC and DFC

AVELLUM announced that it acted as Ukrainian legal counsel to MHP SE and its Ukrainian subsidiaries (“MHP”) in connection with the recent loan financing from the European Bank for Reconstruction and Development (“EBRD”), the International Finance Corporation (“IFC”) and the U.S. International Development Finance Corporation (“DFC”).

EBRD, IFC and DFC have collaboratively organised a financial package totalling USD480 million to support MHP. DFC is providing a loan of up to USD 250 million to MHP to support the company’s poultry and grain production as well as to refinance maturing debt. IFC is providing up to USD 130 million financing to MHP to upgrade and expand its agricultural waste-to-energy facility and to refinance its Eurobonds, which are due in May 2024. The financing from IFC is backed by first-loss guarantees from the United Kingdom and other sources of blended concessional finance. EBRD is providing a loan of up to USD 100 million to MHP to reinforce the company’s financial resilience by refinancing its Eurobonds. The loan will receive backing from the Spanish government and credit support from the EBRD Crisis Response Special Fund.

The primary objective of this landmark deal is to facilitate the refinancing of MHP’s Eurobonds, which is particularly crucial given the challenges posed by restricted access to capital markets due to the ongoing war in Ukraine. This financing is vital for maintaining the stability of the MHP’s financial position and allows the company to navigate economic challenges and sustain its operations, supply chains and preserve job creation amidst geopolitical uncertainties. This, in turn, contributes to the overall resilience of the Ukraine’s agribusiness sector.

AVELLUM played a pivotal role, providing Ukrainian law support to MHP throughout the transaction, advising on project structuring, loan documentation, and regulatory aspects, addressing challenges posed by the cross-border payment moratorium in Ukraine.

MHP is a leading international food and agrotech group with headquarters in Ukraine. MHP is the largest producer and exporter of chicken in Ukraine and the leading producer of poultry meat in Europe. The company also specialises in the cultivation of cereals and other agricultural activities.

AVELLUM team was led by senior partner Glib Bondar with significant support from of-counsel Yuriy Krasnoliudskyi, associates Mariana Veremchuk, Yaroslav Pavliuk, Andrii Kroshko and Marharyta Brianska. Partner Vadim Medvedev, counsel Anton Zaderyholovа and associate Taisiia Duda provided support on tax matters of the transaction.

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