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UKRPRODUCT GROUP LIMITED ANNOUNCES FIRST DISBURSEMENT UNDER EBRD LOAN AGREEMENT: Latest news

16 August 2011

Kyiv, Ukraine – August 16, 2011 – Ukrproduct Group (“Ukrproduct” or “the Group”) (AIM: UKR), a leading producer and distributor of branded dairy products in Ukraine,  today announces the drawdown of the first Euro 2.5 million from its  loan facility with  the European Bank for Reconstruction and Development (EBRD). The Euro 11 million loan from the EBRD’s Agribusiness Sustainability Investment Facility was announced on 21 April 2011 and will fund the reconstruction of Ukrproduct’s dairy plant in Starokonstantyniv. The investment is expected to significantly improve the productivity, energy efficiency and sustainability of the plant. 

Preparatory works are already underway, including development of the design for the new milk reception and milk processing units and removal of obsolete equipment. Ukrproduct has concluded agreements for equipment supply with two leading European manufacturers.      

The Group will provide further updates on the progress of the upgrade project under the EBRD loan in due course.

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