International Finance Corporation (IFC) has committed to extend a loan of $50 million to Shenzhen-listed Haid International to enable it to invest in Vietnam, India, and other potential emerging markets, according to a disclosure on Thursday.
Haid International distributes livestock fodder and aquatic livestock. The company was incorporated in 2010 and is based in Hong Kong. Haid operates as a subsidiary of Guangdong Haid Group Co., Limited.
The investments are hoped to stimulate “regional integration, job creation, and economic development through upstream and downstream linkages.”
According to the disclosure, IFC is providing a long-term loan that is not readily available in the markets into which Haid is expanding.
With a tenor of seven years, this will be the longest term financing obtained by Haid so far. Haid will leverage IFC’s investment experience and country presence in new markets to mitigate its entry risk.
“The project has limited potential adverse environmental and social impacts,” IFC said in its rationale.
Haid’s business activities have indicated that they improve farmer incomes and support climate change agenda.
The general public owns 42% in Haid. The remaining shares are owned by Guangzhou Haihao Investment Co. XUE Hua, the Chairman, owns 22.88 per cent in Haid through this investment entity.