PAN Farm enlists IFC, Daiwa as new investors

The International Finance Corporation (IFC), a member of the World Bank Group and Daiwa-SSIAM Vietnam Growth Fund II, co-managed by Daiwa Corporate Investment under Daiwa Securities Group and SSI Asset Management under Saigon Securities Inc. (SSI), are new investors in The PAN Group’s agriculture business, PAN Farm JSC.

On May 4, PAN Farm JSC signed the contract to mobilise VND400 billion ($17.6 million) from domestic and international investors. This is the first time PAN Farm mobilised capital after its establishment in August 2016. After this mobilisation, PAN Farm’s chartered capital has risen from VND1 trillion ($44 million) to VND1.22 trillion ($53.6 million).

Besides IFC and Daiwa-SSIAM Vietnam Growth Fund II, SSI was the third investor to contribute capital to PAN Farm this time.

The VND400 billion ($17.6 million) will be used by PAN Farm to expand the production and sales of seedlings, to apply high technology in the production of flowers, vegetables, fruits, and high-quality safe produce with prestigious origins, completing the supply chain to serve customers not only in Vietnam but also around the world.

IFC’s equity investment, which represents about 10.4 per cent of the company’s share capital, has elevated its position to become a strategic investor of PAN Farm. IFC first invested in The PAN Group in January 2015. This further investment shows IFC’s commitment to the strategy and potential of The PAN Group and IFC’s interest in Vietnamese agriculture.

The participation of two prestigious international financial institutions, namely IFC and Daiwa Securities Group not only increases PAN Farm’s financial capacity for a larger production scale, but it also brings international support for PAN Farm by expanding cooperation with the two institutions’ network especially in agricultural expertise, agricultural technology, distribution networks. Ultimately, this will contribute PAN Farm realise to become a leading agricultural company in Southeast Asia.

On the occasion of the ceremony, chairwoman of PAN Farm Nguyen Thi Tra My also announced that the high-tech cantaloupe by Vinaseed is officially going to be launched in the Vinmart supermarket system within a month, besides the company’s traceable rice, bringing to Vietnamese consumers more high-quality choices when they shop for produce.

PAN supplies high-quality agricultural produce and packaged food to the global and Vietnamese markets. It has a total consolidated assets of VND4 trillion ($176 million). It is directly or indirectly holding a series of leading Vietnamese agricultural companies, such as Vinaseed, Bibica, Lafooco, and Aquatex Ben Tre. PAN’s larger shareholders include domestic investors NDH Invest, SSI, and CSC Vietnam, and foreign investors TAEL Two Partners, IFC, ORIX, GIC, and PYN.

PAN Farm owns Vinaseed, which in turn owns a bunch of large seed companies, has been the market leader in Vietnam's seed industry, and part of the joint venture with a Japanese company PAN-SALADBOWL JSC. PAN-SALADBOWL produces flowers for export to Japan and is about to enter the high-quality fruit and vegetable market in Vietnam. PAN Farm aims to create a complete supply chain in agriculture and boost its contribution to The PAN Group’s Farm – Food – Family value.

 

Nguyen Duy Hung - Chairman of The PAN Group

Investors lined up to invest in PAN Farm, and we picked the cream of the crop with IFC and Daiwa Securities Group. PAN Farm is an agricultural company with a clear strategy, which is rare in this sector in Vietnam. We hope for IFC’s continued support for many years, just like how it has been supporting The PAN Group for the past years. On the other hand, we hope for Daiwa’s support in expanding the market of PAN-SALADBOWL in Japan.

Nguyen Thi Tra My - Chairwoman of PAN Farm

This successful capital raise by PAN Farm represents the potential of Vietnamese agriculture in general and PAN Farm in particular to international investors and strengthens the agricultural foundation of The PAN Group.

We appreciate the partnership between IFC and The PAN Group over the years. With their international experience in the agricultural sector, IFC’s investment in PAN Farm will be a great support to expand its seed and horticulture business and apply sustainable farming practices and standards as well.

Kyle Kelhofer - IFC country manager for Vietnam, Cambodia and Lao

The PAN Group has a strong management team and has been successfully leveraging international best practices. This, combined with Vietnam’s fundamental comparative advantage in agriculture, bodes well for the group.

With IFC’s support, PAN Farm’s food safety, environmental, and social standards will match international best practices and boost local industry standards. Also, IFC has been investing in companies like PAN Farm in other countries, so we bring experience to the table that can help PAN Farm and Vietnam grow faster.

 

 

By Hong Anh