DEG grants $17.5 million loan to Vietnamese food and agriculture group
A DEG spokesperson confirmed the switch to FeedNavigator. The development was first reported on DealStreetAsia.
Nova Consumer Group, formerly Anova Corporation, was established in 1992 in Vietnam. The company derives its revenue from its activities in animal husbandry, the manufacture of animal feed 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 operates seven pig, cow and chicken farms in several regions of the country.
According to DEG, Nova Consumer has “has successfully established itself as a reputable local player in a highly commoditized and cyclical market segment”led by international producers.
Reasons for funding
DEG, which provides finance, advice and support to private sector companies operating in developing countries and emerging markets, said there were several reasons for providing the $17 long-term guaranteed loan. .5 million, among which the strengthening of the balance of the animal feed company. and allowing Nova to finance or refinance maintenance CapEx for its animal feed, health or agricultural segments.
Long-term funding provided by DEG is not readily available locally, he said. The investment, the bank added, contributes to DEG’s strategy of supporting SMEs in developing countries.
The Vietnamese company currently employs around 1,400 employees and DEG explained how it aims to create 1,000 new jobs over the next five years through future growth and business diversification.
Meanwhile, this week, Nova Consumer announced an initial public offering (IPO) of 10.9 million shares, or 10% of the capital.