ASIA – IFC-backed Vietnamese agribusiness conglomerate, Nafoods Group has secured a US$5 million funding form the Finnish Fund for International Cooperation to support the company’s expansion plans.
Nafoods plans to use the proceeds to set up a new value-added products processing facility at its Long An factory in southern Vietnam.
The company intends to set up a new processing line for soft dried sugar and non-sugar tropical fruits with a 150MT monthly processing and an additional 150 MT production capacity for all natural cashew and peanut butters.
The company said that the expansion will be completed in two phases in two phases: phase one by end of May 2020, and the second phase by the end of 2020.
Commenting on the financing deal, Nafoods’ CGO & BOD member Ryan Galloway said; “Nafoods is very fortunate to have long-view partners like Finnfund to support our vision of delivering Vietnam-made, quality value-added products to developed markets in spite of Coronavirus’ current global economic impact. We look forward to working with Finnfund over the life of the project.”
“Nafoods has a responsibility now more than ever to get healthy products in the hands of those that need them most,” added Nguyen Manh Hung, Nafoods’ Chairman and CEO.
“Thanks to Finnfund’s support, we will be able to accelerate our production plans and do our part to support during this time of international need.”
“By sourcing fruits from various regions in Vietnam, Nafoods is improving reliability of income of small-holder farmers” said Markus Pentikainen, Finnfunds’ Investment Manager.
“Nafoods with their modern processing and packaging facilities is a good example of a company supporting the entire agricultural value chain and thus having a significant contribution to the local economy.
“Financing sustainable and export-oriented agribusiness companies like Nafoods is a major focus of Finnfund’s strategy.”
Mid-last year, Nafoods raised an US$8 million quasi-equity investment from the International Finance Corporation (IFC) a part of a US$28.2-million package including internally generated cash and equity/bank borrowings that IFC had proposed earlier.