Loc Troi Group Joint Stock Company
Status: Investment in contracting phaseWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our prospective customer?
Loc Troi Group (“LTG”) is Vietnam’s leading integrated agribusiness, active in rice, crop protection chemicals, and certified seeds. The company employs over 3,600 employees, including 1,200 agronomists who provide technical advice and crop management services to farmers. LTG plans to roll out an integrated model of pre-financed contract farming for rice farmers (Integrated Model).
What is our funding objective?
FMO, as lead arranger, intends to provide up to USD 90mln through two senior secured facilities to finance i) expansionary capex to upgrade rice mills and warehouses in group subsidiaries and associates, and (ii) working capital to support the Integrated Model program.
Why do we want to fund this investment?
The proposed transaction intends to create jobs, strengthen food production & security, improve farmer livelihoods, mobilize private funding, strengthen climate adaptation and resiliency of rice farmers and reduce methane-related rice emissions. The vision of LTG aligns with FMO’s in promoting sustainable agriculture in Vietnam.
What is the Environmental and Social categorization rationale?
LTG’s E&S risk category is B+. The following IFC Performance Standards are applicable: PS 1 (assessment and management Environmental & Social risks and impacts), PS 2 (labour and working conditions), PS 3 (Resource Efficiency and Pollution Prevention), PS 4 (Community Health Safety and Security), and PS 6 (Biodiversity conservation and sustainable management of living natural resources) in relation to the supply chain. FMO is further investigating the potential trigger of PS 5 (Land Acquisition and Involuntary Resettlement) and PS 8 (Protection of Cultural heritage). LTG plans to further strengthen corporate management systems and HR policies and procedures. Additionally, a Supplier Code of Conduct will be established, which includes an exclusion list.
More investments
| Date | Total FMO financing |
|---|---|
| 12/19/2023 | USD 10.00 MLN |
| 12/19/2023 | USD 60.00 MLN |
- Website customer/investment
- https://loctroi.vn/
- Region
- Asia
- Country
- Viet Nam
- Sector
- Agribusiness, Food & Water
- Publication date
- 10/20/2023
- Deadline for feedback
- 12/19/2023
- Total FMO financing
- USD 20.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+