Hanoi, Vietnam, January 22, 2015—IFC, a member of the World Bank Group, has invested $6.5 million to support Pan Pacific Corp.’s expansion in the agricultural and food sector, a fundamental pillar of Vietnam’s economy bringing in substantial export revenues and creating jobs.
IFC’s equity investment represents about 5 percent of the share capital of Pan Pacific, a leading Vietnamese agribusiness and food company established in 1993 and listed on the Ho Chi Minh Stock Exchange. The financing will help the company realize its long-term strategic plan of acquiring and consolidating more agricultural and food businesses. IFC will help Pan Pacific improve environmental and social practices in these businesses to promote sustainability in Vietnam’s agricultural sector.
“Pan welcomes IFC among our group of extraordinary international and domestic investors,” said Michael Rosen, Pan Pacific’s Chief Executive Officer. “IFC’s support in building Pan Pacific’s food consumer business helps us move toward our goal of becoming a leading regional agriculture and food company.”
The agricultural sector, including fishery and forestry, is growing fast in Vietnam and accounts for more than 20 percent of the country’s gross domestic product and 28 percent of export revenues. 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.
“Vietnam 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 best practices in Vietnam.”
IFC has significantly scaled up its investments in agribusiness over the last few years. In fiscal 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.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in about 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and boost shared prosperity. In FY14, we provided more than $22 billion in financing to improve lives in developing countries and tackle the most urgent challenges of development. For more information, visit www.ifc.org.
About Pan Pacific Corp.
Pan Pacific Corp. and its subsidiary companies (HOSE: PAN) are pursuing a rollup and consolidation plan in agriculture and FMCG food companies focused on Vietnam with subsequent expansion through Southeast Asia and beyond. For more information, visit www.panpacific.vn.
Source:
IFC