IFC buys bonds worth $25.6 mln from Vietnamese agri firm

The World Bank’s International Finance Corp will buy VND600 billion ($25.6 million) worth of convertible bonds to be issued by Vietnamese agri pork producer and feed mill operator BaF.

The private placement is expected to be done during this half to fund the expansion of BaF’s farm and food businesses, the IFC said.

“With Vietnam’s pork sector severely impacted by African swine fever, BaF’s expansion is expected to contribute to a recovery of pork supply as well as an improvement in biosecurity across Vietnam.”

The bond has a seven-year term and a coupon rate of 5.25%. The conversion price will depend on the exchange rate at the time of maturity.

BaF said it would use the proceeds to expand its pig farms and increase its working capital.

Its revenues and profits almost halved to VND3 trillion and VND128 billion in the first half of this year as it shifted its focus from crops to animal husbandry.

It hopes to increase the number of pig farms from the current 15 to 40 by 2025.


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