IFC Mulls over Joining $180M Financing for Vietnam-based GreenFeed

The International Finance Corporation (IFC), a member of the World Bank, is considering participating in a $180 million financing for the Vietnamese animal and aqua feed producer GreenFeed Vietnam Corporation, local and foreign media reported. The proposed loan investment of up to $43 million equivalent bond in GreenFeed Vietnam Corporation is to finance GreenFeed’s growth in genetic (breeding), animal and aqua feed, and commercial pig production in Vietnam. The proposed investment is part of IFC Agribusiness’ African Swine Fever (ASF) Regional Recovery Program. IFC’s use of proceeds will support GreenFeed in commercial expansion of its feed mills, pig breeding farms, and rearing and fattening operations. The plan is to grow GreenFeed business to 200,000 commercial sows per annum. Part of this IFC investment, will support the planned construction of an additional 200 sow and fattening farms. Established in 2003, GreenFeed has so far owned ten factories in Vietnam, Cambodia, Myanmar, and Laos, with a combined capacity of two million tons annually. As of end-2019, GreenFeed’s total assets were estimated at VND4.9 trillion ($211.21 million), up 43% from 2016’s figure. Such assets were equal to half of Dabaco Group Joint Stock Company (HOSE: DBC) and one-third of Masan MEATLife JSC (UPCoM: MML), two infield listed giants. GreenFeed’s equity was VND2.3 trillion at end-2019, versus VND3.03 trillion of DBC and VND7.52 trillion of MML. However, GreenFeed earned a net profit of VND512 billion in 2019, compared to VND305 billion of DBC and VND370 billion of MML. (Dan Viet, etime.danviet.vn, viettimes.vn, dealstreetasia.com, seiko-ideas.com)