IFC proposes $40m investment in China's Anyou

Anyou is currently planning to build new feed mills in a number of key pig-farming regions in China; the company is considering facilities in up to six provinces, a project estimated to cost $90 million in all, according to IFC's disclosure. IFC's proposed contribution would be in the form of a long-term loan in renminbi, along with assistance with additional parallel loans.

Currently Anyou supplies feed for over 65 million piglets in China per year, supporting thousands of small and medium-sized enterprises (SMEs). Its new construction is focused on the country's frontier regions, aiming to help farmers in these provinces reduce piglet mortality, thereby improving production efficiency.

Attractions of the project for IFC include its potential for job creation in rural China, reducing the environmental impact of pig farms through increased efficiency, and improving China's overall food safety and quality due to improvements in pig health. Anyou, for its part, was attracted to IFC for its ability to provide long-term financing; the company has so far been limited mostly to short-term loans, which complicate its growth plans.

This is IFC's second investment in Anyou; it previously contributed a $20 million loan and a $15 million equity investment in 2013 to support the company's expansion in China's frontier markets. In addition, IFC has supported Muyan Foodstuff, an operator of multiple hog farms in Henan province, with three loans, the most recent of which was announced earlier this year.

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• Topics
• Greater China
• Infrastructure
• Expansion
• China
• IFC
• Agriculture