Muyuan Loan 3 (IFC-38272)

  • China
Where the impacts of the investment may be experienced.
Specific Location
Fugou and Zhengyang County of Henan province
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Bank Risk Rating
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Jul 30, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
The holder of the loan, grant, or other investment.
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 39.14 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 102.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 15, 2017

Disclosed by Bank Jun 30, 2016

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Project Description
Founded in 1992, Muyuan Foodstuff Co. Ltd. ('Muyuan" or the "Guarantor" or the "Group"), is a large-scale, integrated, farrow-to-finish intensive pig breeder and hog producer headquartered in Neixiang County, Henan Province, China. Muyuan is an existing IFC investee. IFC has an equity investment in Muyuan (committed in 2010, project #29089) and has processed two loans, (in 2012, #32156 and 2014, #33505). Muyuan is publically listed in the Shenzhen Stock Exchange since January 2014.Besides its core operations in Neixiang County, Muyuan operates 16 wholly owned subsidiaries scattered in Henan, Shandong, Hubei and Shanxi Provinces. Among them, Dengzhou county (Dengzhou Muyuan), Wolong county (Wolong Muyuan, an IFC loan borrower), Caoxian county (Caoxian Muyuan) and Zhongxiang county (Zhongxiang Muyuan, another IFC loan borrower) are operational close to full capacity, while the rest are either newly-built or at an early stage of operations. The group also has a 40% stake in a slaughter house joint venture with Longda Muyuan Slaughter House (Longda Muyuan) in which the majority partner is Shandong Longda Group Limited, one of the top 10 pork processors and marketers in China.Considering the group's core and subsidiary operations, Muyuan has more than 100 farms, boar stations and breeder farms. The farms are located away from local communities in rural/agricultural areas. The majority of the land area of each farm is occupied by housing for the pigs. Pigs are provided with on-demand feed and water, the feed being delivered from silos located outside each unit. Sloped floors with mechanical scrapers provided under the farrows allow for the collection and storage of solid waste and urine with subsequent pumping or gravity flow to biogas digestors. Summer cooling is provided through ceiling or wall fans and shutters: buildings are designed to maximize air flow through the unit. Winter heating is provided by piping warm water through a ground level piping system. Farms also have offices, accommodation and a canteen. Additionally, within each county/subsidiary, feed mills (owned by the group in Neixiang and the respective subsidiaries in the remaining counties) are established to provide feed to the farms. Also, each county/subsidiary has an animal waste (dead pigs) treatment plant. At the end of 2015, Muyuan had a capacity of 5.5 million pigs and an annual production of around 2 million hogs and breeders.The proposed investment is a US$40 million long-term local currency loan from IFC to Muyuan's two wholly owned subsidiaries - Fugou Muyuan and Zhengyang Muyuan (the companies) to support Muyuan's further capacity expansion in Henan province by building (a) a 340,000 hog farm in Fugou County; and (b) a 240,000 hog farm in Zhengyang County of Henan Province (the "Project"). After project completion at the end of 2017, Muyuan's production capacity will be increased by 580,000 hogs per annum.
Investment Description
  • International Finance Corporation (IFC)
Contact Information
Mr. Qin Jun Secretary of Board Muyuan Foods Co. Ltd Shuitian Village, Neixiang County Nanyang, Henan Province, China Tel: 0377-65239559 E-mail: Website: ACCOUNTABILITY MECHANISM OF IFC The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at You can learn more about the CAO and how to file a complaint at