"The proposed IFC investment of up to US$52 million equivalent in Redeemable Convertible Dividend-paying Preferred Shares (RCDPS) in the Mavin Group is part of IFC Agribusiness’s African Swine Fever (ASF) Regional Recovery Program," reads the official disclosure on the investment project.
Established in 2004, the Mavin Group is one of the top 10 feed producers in Vietnam.
Beyond feed production, the vertically integrated business has operations in animal health, pig breeding, commercial pig farming and food processing. Its business units are located across the north, central and the south regions of Vietnam.
ASF recovery plan
The proposed IFC financing will support the expansion of Mavin’s pig breeding and commercial pig farming capacity and associated working capital requirements.
The organization said it is also looking to potentially support the vertically integrated producer in terms of the design and implementation of group housing for its pig farming operations to improve animal welfare.
This will be complemented, it revealed, by the IFC taking on a broader advisory engagement to advance sector-wide reforms, primarily by advising the Vietnamese government on policy gaps, best practices, and implementation of its national plan to prevent and combat ASF.
The IFC said it conducted inspections of Mavin Food and Mavin Feed sites as part of its comprehensive review of the business.
Mavin Feed operates five mills across Vietnam with an annual production capacity of around 1.2 million tons of feed per annum.
Mavin Food has one operating meat processing factory in Northern Vietnam with a production capacity of 10,000 tons of output per annum. Specialty products include sausages, bacons and hams for the Vietnamese market.
Mavin Vet was founded in 1990 and acquired by Mavin Group in 2013. It produces a range of antibiotics and other products for livestock. The company is reportedly Vietnam’s largest veterinary products producer with 400 distributors nationwide.