GreenFeed ASF

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 Established in 2003 GreenFeed is a vertically integrated pork producer and feed mill operator located in Vietnam. GreenFeed produces animal and aqua feeds and is one of the top five feed millers in Vietnam with six mills located in industrial parks from the North to the South of the country (Hung Yen, Ha Nam, Binh Dinh, Dong Nai, Long An and Vinh Long provinces). GreenFeed’s operational footprint also includes four pig breeding and five pig fattening farms located in Dak Nong, Hung Yen, Dong Nai, Ba Ria-Vung Tau, and Binh Thuan provinces.  The proposed loan investment of up to US$43 million equivalent bond in GreenFeed Vietnam Corporation (“GreenFeed” or the “company”) 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’s 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. Locations for these future expansions is not known at the time of appraisal. Proceeds from the IFC investment will also be used for the upgrade/improvements in efficiency and occupational health and safety in its existing six feed mill operations. This financing will complement an IFC advisory engagement to further strengthen animal husbandry management practices and use of antibiotics at its pig farms and to mainstream food safety management practices and resource efficiency at its feed mills operations.  The company’s asset light business model for pig farm expansion is to identify suitable locations and agree with existing landowners’ the specifications for design and production capacity of the pig farms. The landowner constructs the facility to these agreed standards and then rents the site back to GreenFeed for a specific period in the form of a lease back arrangement.