IFC backs Vietnam's Pan Pacific Corp

Pan Pacific was set up in 1993 and is listed on the Ho Chi Minh Stock Exchange. According to a release, the funding is intended to help the company fulfill its long-term strategy of acquiring and consolidating more agricultural and food businesses.

As part of the deal, IFC said it will help Pan Pacific improve environmental and social practices in the businesses it buys with a view to promoting sustainability in Vietnam's agricultural sector. The fast-growing sector - including fishing and forestry - accounts for 20% of the country's GDP and 28% of its export revenues.

"Vietnam has a comparative advantage for primary agricultural production and IFC supports the sustainable development of this sector," said Vipul Prakash, IFC's director of client services for East Asia and the Pacific. "Our financing and advice will help Pan Pacific set benchmarks for responsible production in line with international best practices in Vietnam."

IFC - which has been increasing its exposure to the agriculture sector - claims to have invested $4 billion in the agribusiness supply chain during the 2014 financial year, taking its overall agribusiness portfolio to $6.1 billion.

The fund's more recent investments in this space include its $27.5 million commitment to Lucid Colloids, one of India's top four producers of food additive guar gum, last September. IFC has also made LPs commitments to agribusiness-focused GP Rabo Equity Advisors which had raised $80 million for its second fund and is targeting a final close of $200 million.

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• Topics
• Industrials
• Expansion
• Southeast Asia
• Agriculture
• IFC
• Growth capital
• Southeast Asia
• Vietnam