The International Finance Corporation (IFC), part of the World Bank, is considering participating in a $180 million financing for the Vietnamese animal and aqua feed producer Greenfeed Vietnam Corporation.
The project will be funded by 1 trillion ($43 million) worth of IFC bonds, with a maturity of up to seven years, $75 million in bank borrowings, and $62 million equity and/or internal cash generation, IFC said in an investment proposal.
Founded in 2003, GreenFeed has integrated operations across the pork value chain, from feed production, pig breeding, and commercial pig farming to pig slaughtering, and pork processing.
IFC said its proposed financing will support the expansion of GreenFeed’s commercial pig farming capacity and some maintenance of GreenFeed’s feed mills in Vietnam.
While being mainly operated in Vietnam, the company also has feed production operations in Cambodia, Laos, and Myanmar. IFC said GreenFeed is currently the fifth-largest feed producer in Vietnam and among the largest locally built integrated players.
GreenFeed’s major shareholders are Oriental Ford Holding and Quang Dung Trading Co Ltd, according to IFC. Oriental Ford is a Hong Kong-domiciled business, and Quang Dung is also an animal feed company, which are both linked to GreenFeed’s chairman Ly Anh Dung, according to DealStreetAsia’s research.
Prior to the financing proposal for GreenFeed, IFC has backed millions of US dollars in the Vietnamese livestock industry, including investments in poultry firm Bel Ga and veterinary medicine business Anova Corp.
IFC’s other investments in the sector include Guangxi Yangxiang, Shenzen Alpha Feed, and Muyuan Foods in China, and India’s Suguna Group.