The International Finance Corporation (IFC
), a member of the World Bank
Group, has invested 340 billion dong ($15.11 million) in Anova Feed Joint Stock Company, a subsidiary of Anova Corporation, to help the company expand animal feed production.
IFC will make the investment by buying five-year convertible bonds, IFC said in a press release filed on its website.
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.
IFC’s move came as domestic demand for meat has been on the rise given the country’s growing population and higher standards of living. Vietnam’s feed industry has been dominated by large foreign companies such as Thailand’s C.P Group.
“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.
Anova Feed was established in June 2012, specializing in manufacturing feed for livestock and poultry. It has three feed mills in Long An, Dong Nai and Hung Yen provinces and owned a distribution network across the country.
Besides Anova Feed, IFC now owns a 4.81% stake in Hochiminh Stock Exchange-listed Pan Group (PAN), a major agribusiness in the country.