IFC mulls $20m loan in Vietnamese plastic manufacturer An Phat Holdings

Photo: An Phat Holdings

International Finance Corporation (IFC), a member of the World Bank Group, is considering a $20 million debt investment in Vietnam-based plastic manufacturer An Phat Holdings to fund its first compostable material manufacturing plant in the northern province Hai Duong, according to a disclosure.

The investment, which is a 7-year-convertible loan, will be used to support the implementation of a PBAT (polybutylene adipate terephthalate)  plant with a capacity of 20,000 MT per year and PBAT compound plant with a capacity of 21,000MTper year.

The project is estimated to cost $82 million which would be funded by a $20 million IFC convertible loan; $30 million equity and $32 million bank borrowings and convertible loans from other investors.

APH targets that by 2023 compostable products will contribute 40-50 per cent of the group’s packaging revenue.

An Phat Holdings currently has two main subsidiaries including An Phat Bioplastics Joint Stock Company (AAA) and Hanoi Plastics Joint Stock Company (Hanoi Plastics). Of which, AAA is one of Vietnam’s primarily produces conventional, compostable as well as industrial bags.

Pham Anh Duong, Nguyen Le Trung, Pham Hoang Viet and Dinh Xuan Cuong are the major shareholders in APH with total ownership of 49.5 per cent. Institutional and retail investors own the rest.

APH was listed on Ho Chi Minh Stock Exchange on July 28 this year and had a market capitalization of $414 million (as of Oct 16, 2020).

In July, IFC approved a total commitment of $60 million to Vietnam-focused private equity firm Mekong Capital’s latest fund. Earlier, the World Bank Group’s private lending arm, said it is providing a financing package of $75 million to Vietnam-based real estate firm Phu My Hung Development Corporation to help sustain its operations in the wake of the COVID-19 pandemic.

 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.