Anova Corp has become a leading group in veterinary medicine industry in Viet Nam. — Photo anovacorp.vn

HCM CITY (Biz Hub)—IFC, a member of the World Bank Group, is helping Anova Corporation to build more animal feed facilities in support of the country's growing livestock industry, contributing to food safety and creating hundreds of jobs.

IFC has provided VND340 billion (about $15 million equivalent) through a five-year convertible bond to support one of the company's subsidiaries Anova Feed Joint Stock Company to expand animal feed production. The investment will help the feed producer construct two additional mills in Dong Nai and Hung Yen provinces and a warehouse in Long An province over the next two years. Once the new feed mills and warehouse come online, more than 500 new jobs will be created to supply products to nearly 40,000 farmers across Vietnam.

Domestic demand for meat has been on the rise given the country's growing population and higher standards of living. Vietnam's agricultural landscape is driven by small farms and its farmers are looking to make sustainable strides in biosecurity and feed quality.

"IFC's financing will help Anova Feed triple its production capacity, providing quality and reliable feed to the fast growing animal protein sector in Vietnam," said Nguyen Hieu Liem, Chief Executive Officer at Anova Corporation. "We are also seeking IFC's advice in expanding our reach to other countries and strengthening corporate governance standards in preparation for a listing."

In addition to financing, IFC will help Anova Feed pursue sustainable operations by adopting IFC Performance Standards and the World Bank Group Environment, Health and Safety Guidelines.

"IFC aims to support the sustainable development of Vietnam's agricultural sector, which is rapidly growing and accounts for more than 20 percent of the country's gross domestic product," said Kyle Kelhofer, IFC Country Manager for Vietnam, Cambodia and Lao PDR. "By supporting companies like Anova Feed, we are promoting the development of efficient and sustainable local private enterprises along the agribusiness supply chain as a driver of competitiveness and improvement in agriproducts in the local market."

IFC has significantly scaled up its investments in agribusiness in recent years. In the fiscal year ended in June 2015, IFC invested $3.0 billion across the agribusiness supply chain—from farm to retail—to help boost production, increase liquidity, improve logistics and distribution, and expand access to credit for small farmers. At the end of the fiscal year, IFC's committed agribusiness portfolio stood at $5.2 billion.— VNS