26.49 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	26.49

* These investment figures are indicative

The Project is assessed as part of the overarching programmatic intervention (ASF Asia Recovery Program) to respond to the impacts of the ASF on the regional pork industry. The most significant, expected Project-level outcome resulting from this expansion is the impact on consumers from the provision of safe pork at the time of severe supply shortage as well as implementation of advanced biosecurity procedures at the new farms. At the market level, the Project, alongside other planned investment, and advisory interventions, is expected to promote market resilience through improvement of biosecurity and disease management, both by supporting industry consolidation and disseminating best practices among smaller players.

Financing structure: The proposed transaction is a quasi-equity investment of up to VND1,200 billion (US$52 million equivalent). This type of financing is not readily available in the Vietnam agribusiness sector. The financing package will help strengthen the Company's capital structure and improve liquidity. This is especially important during the current period of market disruption, as the industry has been severely affected by outbreaks of ASF and is experiencing additional turmoil stemming from the COVID-19 pandemic. Knowledge, innovation and capacity building: IFC is looking to provide technical expertise and facilitate knowledge sharing on animal welfare best practices. As part of this initiative, IFC is exploring an opportunity to provide advisory services to support the Company with designing and implementing a group housing transition for its pig farming operations. Standard setting: IFC will support Mavin to implement best practices through raising the level of compliance to that of IFC's Performance Standards, European-level animal welfare standards, and industry best practices.

 The proposed investment is a Category B project in accordance with IFC’s 2012 Policy on Environmental and Social Sustainability. Key E&S risks and impacts from this project are limited, site-specific, and can be readily addressed through generally accepted mitigation measures described in this document and the attached ESAP. The E&S risks and issues are: (i) existence and effectiveness of Mavin Group environmental, health and safety (EHS), human resources (HR) and food safety (FS), and Product Safety management systems at its Farms, Feed Mills, Food and Veterinary Products facilities including legally required environmental permitting and mitigation measures for solid, liquid (manure/organic wastes/waste water), and packaging waste; (ii) organizational capacity for implementing, monitoring and reporting at Group and company ESMS; (iii) labor and safe working conditions of direct employees, and contracted farming operations, including oversight on management on Occupational Health and Safety (OHS) standards; (iv) emergency preparedness and response; (v) compliance of contractor farm operations with EHS/HR requirements; (vi) monitoring of EHS parameters (air emissions, effluents), including water and energy use; (vii) sourcing of raw material inputs for feed mill operations; (viii) animal welfare management practices in pig farms; (ix) stakeholder engagement and community grievance mechanism. IFC PSs, World Bank Group (WBG) Environmental Health and Safety (EHS) General and Sector specific (Food and Beverage Processing; Mammalian Livestock Production; Poultry Production) Guidelines (2007); and the IFC Good Practice Note (GPN) on Improving Animal Welfare in Livestock Operations (2014) are applicable to this investment.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.