Agro-industrial holding Astarta, Ukraine’s largest sugar producer, and the International Finance Corporation (IFC) have signed a $40 million loan agreement to build Ukraine’s first soy protein concentrate plant, the agro-industrial holding’s press service said on Facebook.
Astarta noted that this investment is part of a financing package of up to $80 million approved by the IFC Board of Directors on April 1, 2025.
It is noted that the funds are secured by guarantees from the European Commission under the Ukraine Investment Framework and the Dutch government in support of the IFC Economic Resilience Action (ERA) program. The investment will contribute to job creation, increased competitiveness of the agricultural sector, and export diversification.
“This investment is an example of how strategic international partnerships transform challenges into long-term opportunities for Ukraine. By launching the country’s first soy protein concentrate production facility, we are integrating our country into global food chains, promoting economic recovery, industrial modernization, and job creation. Astarta is implementing this project as part of its sustainable agribusiness development strategy,” emphasized Viktor Ivanchik, CEO and founder of the agricultural holding company.
Alfonso Garcia Mora, IFC Vice President for Europe, Latin America, and the Caribbean, expressed confidence that this investment will help Ukraine produce more high-value agricultural products and move up the value chain.
“By improving the competitiveness of the agricultural sector and its integration into European markets, we aim to support recovery, job creation, and resilience,” he said.
According to European Union Ambassador to Ukraine Katarina Mathernova, whose words are also quoted in the press release, Astarta’s new plant is an example of how joint efforts bring real results for Ukraine’s future.
In turn, the Ambassador of the Kingdom of the Netherlands to Ukraine, Alle Dorgaut, noted that the Netherlands is pleased to contribute to the construction of Ukraine’s first soy protein concentrate plant.
“The IFC Economic Resilience Action (ERA) program provides support to critical sectors during the Russian invasion, including agribusiness (…) IFC’s investments in Ukraine are crucial, especially in the context of war, to ensure the vital recovery of the Ukrainian economy. In this context, international financial institutions, including the IFC as part of the World Bank Group, play a key role,” he stressed.
Astarta added that, in partnership with the Czech government, the IFC will also support the agricultural holding in conducting market and marketing research in Ukraine and provide advice on supporting local communities, youth, and older workers, facilitating the reintegration of veterans.
As reported, on April 1, the IFC approved a project to provide Astarta with an $80 million financing package for the construction of a soy protein concentrate plant in the Poltava region. The package will consist of: (i) a Loan A of up to $50.7 million from the IFC’s own resources, (ii) a loan of up to $24.4 million from the IFC, acting as the implementing agency for the Economic Resilience Program for Ukraine (ERA) with support from the Netherlands, and (iii) a Loan B of up to $40 million to be provided to the participants, provided that the total amount of the loans does not exceed $80 million.
In 2024, Astarta began investing in the construction of a soybean meal processing plant with a capacity of 500 tons/day (approximately 100,000 tons/year) at the Globinsky Industrial Complex (Poltava region). The agricultural holding will invest over EUR 76 million in the purchase of equipment and technologies and create 110 new jobs.
Astarta and its structural unit Astarta Agro Protein signed the first investment agreement with the Ukrainian government to receive compensation from the state for significant investments. Under the agreement, the state will provide the agricultural holding with a number of incentives, including exemption from import duties on new equipment, import VAT on new equipment, and income tax for up to five years.
Astarta is a vertically integrated agro-industrial holding company operating in eight regions of Ukraine and the largest sugar producer in Ukraine. It comprises six sugar factories, agricultural enterprises with a land bank of 220,000 hectares, dairy farms with 22,000 head of cattle, an oil extraction plant in Hlobine (Poltava region), seven elevators, and a biogas complex.
In the first nine months of 2024, Astarta increased its net profit by 35.1% compared to the same period in 2023, to EUR75.60 million. The agricultural holding’s revenue grew by 12.6% to EUR441.46 million, and EBITDA by 12.8% to $131.56 million.
The U.S. Development Finance Corporation (DFC) has approved a loan of up to $40 million for Astarta, Ukraine’s largest sugar producer, at the sub-council level.
“(The loan) will assist in the construction and operation of a soy protein processing plant with a projected annual capacity of about 100,000 tons and help Astarta make other investments,” DFC said on its website.
At the same time, the International Finance Corporation (IFC) of the World Bank Group announced at the end of November 2024 that it was considering a $40 million loan to Astarta and a parallel $40 million loan for the construction of a soy protein concentrate plant in Poltava region. The recipient of the funds is Astarta Agro Protein LLC, a subsidiary of Astarta Holding plc.
It was noted that IFC has already assisted the agricultural holding in conducting market research, preparing a business plan for the project, and assessing its commercial viability in order to interact with potential investors.
Initially, the IFC Board of Directors planned to consider this project on December 20, but then postponed it to February 28, 2025.
As reported, in 2024, Astarta began investing in the construction of a plant for processing soybean meal into soy protein concentrate with a capacity of 500 tons per day (about 100 thousand tons per year) in the Globinsky Industrial Complex (Poltava region). The agricultural holding will invest over EUR 76 million in equipment and technology and create 110 new jobs.
“Astarta and its structural unit Astarta Agro Protein signed the first investment agreement with the Ukrainian government to receive compensation from the state for significant investments. As part of the agreement, the government will provide the agricultural holding with a number of incentives, including exemptions from import duties on new equipment, import VAT on new equipment and income tax for up to 5 years.
IFC recalled that Astarta commissioned a soybean processing plant in Globyno in December 2013. In 2023, it processed 232 thousand tons of soybeans, 73% of which were grown by the agricultural holding, and produced 172 thousand tons of soybean meal. In the first half of 2024, the share of the plant’s own raw materials increased to 90%.
Soybean concentrate is produced by processing soybean meal with higher added value. It serves as a raw material for the production of animal feed.
In 2023, the agricultural holding reduced its net profit by 5.0% to EUR61.9 million, and its EBITDA decreased by 6.1% to EUR145.77 million, while revenue increased by 21.3% to EUR618.93 million.
