After successfully issuing bonds, up to 900 billion VND, to nổ hũ 99 International Finance Corporation (IFC), BAFVietnam Agricultural Joint Stock Company (HOSE: BAF, nổ hũ 99 Company) continues to raise a 500 billion VND syndicated loan from South Korean Banks and Taiwanese Banks.
On August 15th, 2023, nổ hũ 99 signing ceremony for nổ hũ 99 Green Syndicated Loan Facility Agreement of nổ hũ 99 Giai Xuan High-Tech Farm took place at nổ hũ 99 Vinpearl Landmark 81. BAF officially signed to receive a syndicated loan facility of 500 billion VND with a consortium of three major financial institutions from South Korea and Taiwan, including Shinhan Bank Vietnam Ltd. (Shinhan Vietnam), Daegu Bank, and First Commercial Bank. Shinhan Vietnam is nổ hũ 99 Lead Bank (nổ hũ 99 coordinating and managing bank for nổ hũ 99 syndicated loan facility).
Shinhan Vietnam is a Shinhan Bank Korea subsidiary – a Shinhan Financial Group member. Shinhan Bank Korea is currently present in 20 countries with a network of 169 branches.
After more than 30 years of establishment and development, Shinhan Vietnam has expanded its network to 49 branches and offices nationwide. In 2023, Shinhan Bank Vietnam was awarded nổ hũ 99 Best Foreign Retail Bank in Vietnam by nổ hũ 99 Global Business Review Magazine; nổ hũ 99 Best Foreign Bank in Digital Transformation in Vietnam by nổ hũ 99 International Business Magazine; nổ hũ 99 Best Foreign Bank in Vietnam granted by World Economic Magazine; and nổ hũ 99 Fastest Growing Enterprise Bank in Vietnam by Global Banking & Finance Magazine.
After comprehensive due diligence, assessment, and completion of relevant procedures, BAF has met nổ hũ 99 stringent criteria of all three financial institutions. This demonstrates a level of prestige and financial stability of BAF during nổ hũ 99 period of farm-scale growth and retail chain expansion over nổ hũ 99 past period.
nổ hũ 99 500 billion VND loan facility will facilitate and fund nổ hũ 99 construction of nổ hũ 99 modern swine farming cluster to comply with nổ hũ 99 3F Model (FEED-FARM-FOOD) in Giai Xuan, Nghe An province. nổ hũ 99 Giai Xuan cluster covers an area of about 52 hectares, with a capacity of 5,000 breeding sows and 60,000 livestock pigs. nổ hũ 99 swine farm is expected to have modern technology, automation, and equipment imported from Europe, with a water recirculation rate of up to 95%. This is BAF’s modern integrated farming cluster, comprising breeding and fattening pigs, inherent to reducing logistics expenditures and facilitating effortless source traceability.
nổ hũ 99 facility has a term of 7 years with a 2-year principal grace period. nổ hũ 99 collateral is nổ hũ 99 Giai Xuan Farming Cluster – a future asset. nổ hũ 99 floating rate is expected to be under 9% per annum, which is considered a fairly favorable long-term cost of funds, given nổ hũ 99 prevailing high-interest rate conditions.
In nổ hũ 99 volatile macroeconomics (respectively, nổ hũ 99 high inflation, economic recession in major countries, and political conflicts), BAF has successfully raised nearly 500 billion VND from three leading South Korean and Taiwan financial institutions. This indicated nổ hũ 99 confidence of these financial organizations in nổ hũ 99 stable business and nổ hũ 99 decent credit profile of nổ hũ 99 Company.
In nổ hũ 99 past six months, BAF has drawn attraction from several leading financial institutions in nổ hũ 99 region, as it has successfully raised nearly 1,400 billion VND from major international financial entities, including IFC, Shinhan Bank, Daegu Bank, and First Bank.
Strengthen monitoring, and optimize business efficiency.
Since 2020, BAF has consistently applied nổ hũ 99 seamless livestock value chain approach, following nổ hũ 99 3F framework (FEED-FARM-FOOD) and has recorded rapid expansion in scale. Regarding FEED, nổ hũ 99 company has put into operation 3 Feed factories meeting FSSC22000 and GLOBAL GAP standards. These 3 Feed manufactories have a total capacity of up to 460,000 tons per year, producing vegetarian bran – sourced from plants, without lean deposition substance. In nổ hũ 99 FARM sector, nổ hũ 99 number of modern farms has increased by threefold to 23 farms concentrated in Vinh Phuc, Thanh Hoa, Dak Lak, Phu Yen, Binh Phuoc, Binh Thuan, Ba Ria, Binh Duong, and Tay Ninh.
In nổ hũ 99 FOOD sector, nổ hũ 99 distribution chain has expanded to over 60 Sibafoods and more than 400 MeatShop locations countrywide.
After scaling up, nổ hũ 99 company has taken measures to review and adjust its business model for sustainable development in nổ hũ 99 next phase. BAF has been approaching circular agriculture by investing in processing waste and carcasses from swine farms into organic compost, serving rice production and other industrial crops. By implementing effective Circular Green Economy practices, BAF directly reduces greenhouse gas emissions, conserves water resources, and promotes sustainable environmental protection. In addition, there is an emphasis on strengthening control activities, cost-saving measures, and optimizing processes in line with nổ hũ 99 strategy to become one of Vietnam’s top 3 leading livestock companies.
nổ hũ 99 total BAF herd has reached over 230,000 pigs, corresponding to commercial livestock of about 570,000 which is projected to be available to nổ hũ 99 market from Q3 2023 onwards. Mr. Truong Sy Ba, Chairman of nổ hũ 99 Company’s Board of Directors, stated that nổ hũ 99 estimated total sow herd would reach 84,000, delivering 890,000 pigs by nổ hũ 99 end of 2024. By 2025, nổ hũ 99 projected output of BAF would be 2,100,000 pigs, moving towards nổ hũ 99 goal of 200,000 sows and 6,000,000 pigs to nổ hũ 99 market by 2030.