Muyuan ASF

pending

Founded in 1992, Muyuan Foods Co., Ltd. (“Muyuan” or the “Company”), publicly listed on the Shenzhen Stock Exchange since January 2014, is the largest integrated and one of the largest overall hog production companies in China, with annual sales of 10.25 million (“m”) commercial hogs, breeders, and piglets in 2019. IFC proposes to provide a RMB 1 billion (approximately US$150m equivalent) senior loan to 6 operating subsidiaries of Muyuan. This loan will support Muyuan in the construction of 10 new pig farm facilities in Anhui, Henan, Heilongjiang, Inner Mongolia, and Shanxi provinces (“the project”) that are primarily in frontier regions of China. The Project is expected to increase Muyuan’s total production capacity by 1.6 million pigs per annum. It is part of IFC Agribusiness’s African Swine Flu (ASF) Regional Recovery Program to help restore pork supply and normalize food costs for consumers by supporting Muyuan, a leading company in the hog industry, to increase its pig production capacity.Muyuan is an existing IFC investee. IFC has an equity investment in Muyuan (committed in 2010, project #29089) and has processed three loans, (in 2012, #32156; 2014, #33505 and 2016, #38272). The Environmental and Social Review summaries of the previous four investments are available at the following links. IFC’s review finds that overall, E&S action plan obligations from previous projects have been materially fulfilled by the company. Under Project #38272, the E&S action plan item #2 (related to occupational health and safety accident investigation methodology and reporting) has been actioned by the company. As an E&S action plan item under project #43279, the company will reinforce this aspect. Refer to the PS2 section below and to the E&S Action Plan for details.Muyuan Pig (Project#29089, disclosed in May 2010)https://disclosures.ifc.org/#/projectDetail/ESRS/29089Muyuan Loan (Project#32156, disclosed in May 2012)https://disclosures.ifc.org/#/projectDetail/ESRS/32156Muyuan Loan 2 (Project#33505, disclosed in May 2014)https://disclosures.ifc.org/#/projectDetail/ESRS/33505Muyuan Loan 3 (Project#38272, disclosed in June 2016)https://disclosures.ifc.org/#/projectDetail/ESRS/38272