DCP DIRECT INVESTMENTS FUND I
Status: Approved investmentWhy disclosure?
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In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
FMO together with Diligent Capital Partners (DCP), a Ukrainian private equity fund manager, will invest in A.P.K.U. FINANCE LTD, one of the largest agri-processing holdings in Ukraine. The company is active in the segments of animal feed, premixes and concentrates, veterinary drugs and pet goods. It operates five production facilities located in Poltava, Khmelnytskyi and Dnipropetrovsk regions with a total annual nominal production capacity of ca. 600kt, including 30kt of premixes and concentrates.
What is our funding objective?
FMO and DCP will fund CAPEX for the construction of a new soybean processing facility, additive production line and packaging line. These projects are expected to reduce input costs for the company while supporting growth in packaged feed. The company also intends to implement a vertical integration project into animal protein that will be developed in accordance with FMO's E&S and animal welfare standards.
Why do we fund this investment?
The investment supports the core strategy of FMO by deploying capital in the circle around Europe and in direct investments in agricultural companies where capital is scarce. The deal has been sourced by Diligent Capital Partners, one of FMO’s partners in Ukraine. In executing this investment FMO is also supporting the development of DCP as a future fund manager in Ukraine, thus supporting the local Private Equity market.
What is the Environmental and Social categorization rationale?
E&S Category for this investment is assessed as B+ mainly due to operational safety risks. The applicable IFC Performance Standards (PS) are 1-4. IFC PS 5-8 are not triggered as the activities of the company do not involve resettlement, impact on biodiversity, indigenous people or cultural heritage.
More investments
| Date | Total FMO financing |
|---|---|
| 5/20/2022 | EUR 0.05 MLN |
| 8/30/2018 | USD 16.20 MLN |
- Website customer/investment
- http://diligent.capital/
- Region
- Europe & Central Asia
- Country
- Ukraine
- Sector
- Agribusiness, Food & Water
- Publication date
- 10/20/2020
- Effective date
- 12/15/2020
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+