IFC invests $39m in BaF to support Viet Nam's modern livestock farming development

Friday, Feb 24, 2023 15:05

At the signing ceremony. — Photo courtesy of BaF

BaF Vietnam Agriculture JSC and the International Finance Corporation (IFC) on Thursday announced a strategic partnership and signed an investment agreement worth US$39 million to support BaF’s development in modern livestock farming.

IFC will provide an investment package of up to VND600 billion in convertible bonds and VND300 billion in bonds issued by BaF, totalling approximately $39 million. The proceeds collected from the offering will be used to support the growth of modern livestock farms with high-quality genetic breeds, animal feed factories, clean meat processing facilities and slaughterhouses.

Founded in 2017, BaF is one of Viet Nam's leading livestock producers applying a clean food ecosystem – the 3F Feed-Farm-Food model, owning 23 modern farms with a total herd of 200,000 pigs and two animal feed factories with a capacity of 260,000 tonnes per year. The company also has a food distribution chain with about 60 Sibafood stores and 300 Meat Shops.

On February 20, the State Securities Commission approved BaF's private convertible bond offering. This is one of the final procedures to complete the IFC's investment in BaF.

Bui Huong Giang, member of BaF’s Board of Directors (BOD) and CEO, said: "The collaboration between BaF and IFC aims to support the development of farms and genetics in line with best industry practices. With the guidance and support of IFC, BaF will gradually transition from individual animal breeding to group breeding, ensuring compliance with requirements for health and biosecurity, animal welfare, efficient use of resources, and protection of natural biodiversity and food safety.”

IFC's funding and technical assistance will help BaF improve its implementation of environmental and social standards in business operations towards sustainable development goals.

“By supporting companies like BaF, we are promoting the development of more efficient and sustainable local private enterprises along the agribusiness supply chain. This will help boost competition and improve farming standards, supporting the food sector’s continued modernisation and implementation of international best practices,” said Samuel Dzotefe, IFC Senior Manager for Manufacturing, Agribusiness and Services in Asia. — VNS

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