DEG extends $17.5m loan to Vietnamese feed and farming group
A spokesperson for DEG confirmed the move to FeedNavigator. The development was first reported on DealStreetAsia.
Nova Consumer group, formerly Anova Corporation, was established in 1992 in Vietnam. The company has revenue streams from its operations in livestock farming, feed manufacturing and the production of veterinary drugs and vaccines for farm animals.
In the animal feed segment, the company has three factories with a total capacity of 730,000 tons per year. It also runs seven pig, cow and chicken farms in several regions of the country.
According to DEG, Nova Consumer has “successfully established itself as a reputed local player in a heavily commoditized and cyclical market segment” led by international producers.
Reasons for financing
DEG, which offers financing, advice and support to private sector enterprises operating in developing and emerging-market countries, said there were multiple reasons behind it providing the US$17.5m long-term secured loan, among them, the strengthening of the feed company’s balance sheet and enabling Nova to finance or refinance maintenance CapEx for either its animal feed, health or farm segments.
The long-term financing DEG provides is not readily available locally, it reported. The investment, added the bank, contributes to DEG´s strategy of supporting SMEs in developing countries.
The Vietnamese company currently employs around 1,400 employees and DEG outlined how it is aiming to create 1,000 new jobs in the next five years through future growth and business diversification.
Meanwhile, this week saw Nova Consumer announce an initial public offering (IPO) of 10.9 million shares, equivalent to 10% of capital.
