Beijing, June 9, 2015—IFC, a member
of the World Bank Group, has agreed to provide a long-term financing package
of $60 million to support the expansion plan of the Singapore subsidiary
of leading Chinese agribusiness company New Hope Liuhe Co. The deal will
boost the company’s investment in agriculture and food businesses across
10 countries in South and Southeast Asia.
The project is expected to create more than 1,500 new jobs, supply agricultural
products to help improve the productivity of an additional 50,000 farmers,
and provide more high-quality animal protein in Bangladesh, Cambodia, India,
Indonesia, Lao People’s Democratic Republic, Myanmar, Nepal, the Philippines,
Sri Lanka, and Vietnam. IFC Vice President for Global Partnerships Karin
Finkelston and New Hope Group Co. Chairman Liu Yonghao attended a signing
ceremony in Beijing.
One of China’s largest agribusiness players, New Hope Liuhe, the listed
entity of New Hope Group, works with more than 80,000 breeding farms and
produces 2.2 million metric tons of poultry products a year.
Liu said Chinese companies should work together to expand into global markets
under China’s “One Belt, One Road” national strategy. By deepening collaboration
with IFC, he said New Hope could tap into IFC’s global network and partner
with other businesses to upgrade the global supply chain. The national
strategy aims to increase Chinese exports overseas and focus on connectivity
and cooperation among primarily countries in Europe and Asia.
“Globalization is one of New Hope’s key strategic priorities and we are
determined to enhance our operation in Asia and further increase our footprint
in Europe and Africa through our overseas headquarters in Singapore,”
said New Hope Liuhe President Li Bing. “IFC’s funding and commitment
to high environmental and social standards will help us build our capacity
in international markets, improve our operation, and benefit more farmers.”
IFC will provide a $40 million loan from its own account and $20 million
from the IFC Managed Co-Lending Portfolio Program, a new syndications platform
that offers institutional investors the ability to passively participate
in IFC’s future senior-loan portfolio.
Speaking of the strategic partnership between New Hope Liuhe and IFC in
China, Karin Finkelston noted that the two institutions have worked together
to promote food safety and sustainable agribusiness in the country for
more than a decade. “Now IFC is supporting the company to grow regionally,
helping create opportunity for farmers in other countries,” Finkelston
“Our financing to New Hope fits perfectly with IFC’s strategic priorities
in promoting agribusiness development,” said IFC Director for Global Corporate
Coverage Vipul Prakash. “It will strengthen agribusiness supply chains,
link farmers to markets, and support investments in rural infrastructure.”
Promoting agribusiness is a priority for IFC in Asia and globally. 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.
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, please visit www.ifc.org
About New Hope Liuhe
New Hope Liuhe Co. Ltd. (stock code: 000876) is founded in 1998 and listed
on the Shenzhen Stock Exchange. The company is positioned as a leading
player in agricultural and animal husbandry products, with business involving
in animal feed, breeding, meat products and financial investment. The company's
business extends to China nationwide, as well as foreign markets including
Vietnam, the Philippines, Bangladesh, Indonesia, Sri Lanka, Kampuchea,
Singapore, Egypt, among others. By the end of 2014, the company has over
500 subsidiaries and 63,444 employees. The company aims to be a world-class
and MEIHAO agribusiness enterprise, and strives for the profit of farmers
and for the benefit of customers. The company works towards increased income
of farmers, meeting the raised living consumption of people and promoting
social progress. For more information, please visit www.newhopeagri.com