HA NOI (VNS) — The International Finance Corporation (IFC) has invested US$6.5 million in Pan Pacific Corp's (PAN) expansion in the agricultural and food sector, the IFC announced yesterday.
IFC will hold about 5 per cent of Pan Pacific. The financing aims to help the company realise its long-term strategy of acquiring and consolidating more agricultural and food businesses. Pan Pacific plans to adopt good environmental and social practices in these businesses to ensure sustainability.
"Pan Pacific welcomes IFC among our group of extraordinary international and domestic investors," said Michael Rosen, Pan Pacific's CEO, adding that the organisation's support would help his company become a leading regional agriculture and food company. The agricultural sector, including fishery and forestry, is growing fast in Viet Nam and accounts for more than 20 per cent of the country's GDP and 28 per cent of export revenue. In addition to financing, IFC will help Pan Pacific pursue sustainable development by adopting IFC Performance Standards and the World Bank Group Environment, Health and Safety Guidelines. IFC will also help the corporation raise corporate-governance and business-transparency standards.
"Viet Nam has a comparative advantage for primary agricultural production and IFC supports the sustainable development of this sector," said Vipul Prakash, IFC's Director of Client Services for East Asia and the Pacific. "Our financing and advice will help Pan Pacific set benchmarks for responsible production in line with international industry best practices in Viet Nam."
IFC has significantly scaled up its investments in agribusiness over the last few years. In 2014, IFC invested $4 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 overall agribusiness portfolio stood at $6.1 billion.
Pan Pacific was established in 1993 and listed on the HCM Stock Exchange. The company increased its charter capital to more than VND200 billion in 2013 from VND250 million in 1998. — VNS.