The project Sponsors are (i) Mr. TRUONG Sy Ba, the Chairman and Founder of Tan Long Group Joint Stock Company (Tan Long Group), (ii) Tan Long Group, and (iii) Siba Holdings Joint Stock Company (Siba Holdings). Mr. Truong Sy Ba holds 88% ownership of Tan Long Group, and 98% ownership of Siba Holdings.

Tan Long Group is the leading commodity trader of animal feed raw materials in Vietnam. Siba Holdings, an entity holding the farming, food, and technology assets of Mr. Truong Sy Ba, is the largest shareholder in BaF, with 20.5% ownership. Mr. Truong Sy Ba was appointed as the Chairman of BaF in March 2022.

The Project is to support BaF’s 2021 – 2023 capex expansion plan totaling US$352.7 million equivalent and includes building and machinery for 13 sow farms, 18 hog farms, 2 feed mills, 1 slaughter and processing factory, and other costs for biological assets, systems, and office.

The Project is expected to be funded by a combination of debt, quasi-equity / equity, and internal cash generation. The IFC investment will consist of a VND600 billion Convertible Bond (US$25.9 mn equivalent) and a VND300 billion senior bond (US$13.0 mn equivalent).

 The Project includes the Company’s operations involving 13 sow farms, 18 hog farms, 1 slaughter and processing factory, and 2 feed mills at the following identified locations across Vietnam (locations not listed are as yet unidentified):

Sow farms:

• Economic Village 2, Eatrol Commune, Song Hinh District, Phu Yen Province
• Hoi Thanh Base, Tan Hoi Commune, Tan Chau District, Tay Ninh Province
• Base 4, Suoi Day Commune, Tan Chau District, Tay Ninh Province
• Suoi Day Commune, Tan Chau District, Tay Ninh Province
• Dang Ha Commune, Bu Dang District, Binh Phuoc Province
• Po To Commune, Ia Pa District, Gia Lai Province
• Giai Xuan Commune, Tan Ky District, Nghe An Province

Hog farms:

• Suoi Day Commune, Tan Chau District, Tay Ninh Province
• Hoa Hiep Commune, Tan Bien District, Tay Ninh Province
• Thanh Binh Commune, Tan Bien District, Tay Ninh Province
• Thung Base, Duc Binh Dong Commune, Song Hinh District, Phu Yen Province

Slaughter and processing factory:

• Block B1 Minh Hung - Sikico Industrial Park, Dong No Commune, Hon Quan District, Binh Phuoc Province

Feed mills:

• Nam Cam Industrial Park, Nghi Xa Commune, Nghi Loc District, Nghe An Province
• Nhon Hoa Industrial Park, Binh Dinh Province

  No risks have been identified.                                                                                                   

 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 BAF Group Environmental, Health and Safety (EHS), Human Resources (HR) and Food Safety (FS), and Product Safety management systems at its farms, feed mills, slaughterhouse/meat processing, including legally required environmental permitting and mitigation measures for solid, liquid (manure/organic wastes/waste water), hazardous and packaging waste; (ii) organizational capacity for implementing, monitoring and reporting on BAF ESMS at corporate and plant-level; (iii) labor and safe working conditions of direct employees, including oversight on management on Occupational Health and Safety (OHS) standards (including contracted and outsourced labor); (iv) Emergency Preparedness and Response (ERP); (v) monitoring of EHS parameters (atmospheric and point source air emissions, effluents, noise), including water and energy use; (vi) sourcing of raw material inputs for feed mill operations; (vii) land acquisition and related impacts; (viii) animal welfare management practices in pig farms; and (ix) stakeholder engagement and Community Grievance Mechanism (CGM).