IFC mulls $80m loan to Chinese pig rearing firm Guangxi Yangxiang

International Finance Corporation (IFC), a member of the World Bank Group, is considering a 560 million yuan ($80 million) loan to pig breeding and farming firm Guangxi Yangxiang Co Ltd (Yangxiang), according to a disclosure.

The proposed loan will help finance the expansion of Yangxiang’s pig breeding and farming capacity and its ancillary facilities in Guangxi. The firm estimates that the cost of the expansion will be about $264 million.

Established in 1998 by Yang Xiang in Guigang, Guangxi Zhuang Autonomous Region, the company has grown to become one of the top pig rearing companies in China. Its businesses are the breeding and farming of pigs and other pig farm services.

This is not the first time IFC is providing financing to Yangxiang. In 2016, IFC extended a $50 million loan to the company to help finance the expansion of its stock sows and the hiring of contract farmers to raise 2 million pigs.

“IFC’s long-term loan is much needed by the company to improve its debt maturity profile and mitigate sector cyclicality in major expansions,” the lender said.

The proposed financing also serves as a stamp of approval for the company’s planned public listing, IFC said in its disclosure. It, however, did not provide details about Yangxiang’s capital market plans.

Yang, the firm’s founder, directly and indirectly owns 42.56 per cent of the company. The other shareholders are the employee-owned funds, 46 individual shareholders, Continental Feed, and two university funds.

IFC noted how Yangxiang implemented innovations in African Swine Flu (ASF) prevention and recovery. It aims to bring these practices to other industry players in Asia.

“IFC will support the company’s continuous efforts in obtaining higher standards in animal welfare and responsible use of antibiotics to make demonstration effects in the industry,” IFC said.

In April, IFC also proposed a $150 million loan to China’s live hog producer Muyuan Foods Co to help finance the construction of 10 new pig farms, primarily in the frontier regions of China.

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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.