Selected Press Release

In Washington, D.C.:
Irina Likhachova
Phone: +1 (202) 473 1813
E-mail: ilikhachova@ifc.org


Zagreb, Croatia, June 5, 2008—IFC, a member of the World Bank Group, is reinforcing its support to Agrokor, a leading agribusiness and retail group in Croatia, to help develop the country’s food processing industry. The investment will support the expansion of two subsidiaries, PIK Vrbovec and Belje, involved with meat processing and farming within Agrokor’s core businesses.  

IFC is providing a €40 million loan to PIK Vrbovec and Belje, supplementing a €40 million loan to the subsidiaries in July 2006. The long-term financing will support critical investments to more than double production capacity at PIK Vrbovec and further develop farm productivity at Belje. It will also provide working capital for both companies.

“This investment demonstrates IFC’s commitment to Agrokor’s business strategy and strengthens our ability to make considerable improvements at PIK Vrbovec and Belje. With IFC as a partner, we will continue to seek the highest standards in our operations, and these efforts will enhance Croatia’s entire agribusiness sector in preparation for accession to the European Union,” said Ante Todorić, Agrokor’s Executive Vice President for the Business Group Retail.

“One of IFC’s main priorities is to support local companies in priority sectors such as food processing, particularly those with potential to invest in neighboring countries,” said Shahbaz Mavaddat, IFC Director for Southern Europe and Central Asia. “This investment is in line with IFC’s strategy in Croatia, and we are pleased to continue supporting Agrokor, which is an important regional player in the sector.”

Collaboration between Agrokor and IFC has also included improvements in environmental and operational standards. As a result, Belje recently obtained Global GAP and HACCP certifications for global best practice in industrial standards for food safety and traceability.

“IFC is pleased to support Agrokor’s efforts to continue its significant progress. Under the company’s management, PIK Vrbovec and Belje have transformed from loss-making into profitable entities. Our further investment will help increase efficiency of their internationally certified production, enhance local food supply, and promote sustainability,” said Oscar A. Chemerinski, IFC Director for Agribusiness.

About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC's vision is that people should have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through syndications and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit www.ifc.org.

Croatia became a member and a shareholder of IFC in 1993. IFC’s committed portfolio in Croatia is $318 million in eight projects across a variety of sectors. IFC has invested in key sectors, including banking, food retail, agribusiness, and paper. For more information, visit www.ifc.org/europe.

About Agrokor
Agrokor is one of the largest domestic integrated food and retail groups in the Balkans, and it is a leader in efficient and modern agribusiness production. In addition to Croatia, which is its largest market, the group has operations in Bosnia and Herzegovina, Hungary, FYR Macedonia, Serbia, and Slovenia. Over the last 25 years, Agrokor has expanded from a small family business for flower production and retail into a €2.8 billion revenue company, consolidating more than 40 companies. Its core businesses are the production and distribution of food and beverages; food retail and wholesale; and production, processing, and trading of agricultural goods. For more information, visit www.agrokor.hr.