Anyou III

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     Anyou Biotechnology Group Co., Ltd. (“Anyou” or the “Company”) is a leading animal feed company in China which produces a range of animal feed products at 35 feed mills across 26 provinces with a total production of c. two million metric tons (MT) in 2020, comprising mainly of pig feed, and smaller quantities of fish, cow, and duck feed. Products are available in powder, pellet, and granular forms depending upon required end uses. The proposed investment is a secured RMB loan of up to US$40 million equivalent.  Use of proceeds will be for the construction and operation of four additional greenfield feed mills, one each in the four frontier provinces of Gansu, Guizhou, Hubei, and Yunnan in China (the “Project”).  Anyou is a portfolio IFC client. The disclosed E&S documents of previous investments are available at https://disclosures.ifc.org/project-detail/ESRS/36905/anyou-ii and https://disclosures.ifc.org/project-detail/ESRS/31568/anyou. Both investments are materially in compliance with IFC Performance Standards requirements, and E&S Action Plan (ESAP) obligations have been met. The overall E&S performance is considered satisfactory. Similar to existing feed mills, the proposed feed mills will adopt a production process comprising several key steps: testing, unloading and storage of raw materials; cleaning of raw materials; grinding of grains and other materials; mixing; cooling and drying; bagging; storage; and loading of finished feed products on outgoing trucks. The main raw materials utilized at the proposed feed mills will be grains (corn, wheat, etc.), proteins (soybean meal and fish meal), oilseeds (soybean oil), and nutritional supplements, such as amino acids added to the final product mix.