Guangxi Yangxiang Co Ltd (IFC-38720)

Countries
  • China
Geographic location where the impacts of the investment may be experienced.
Specific Location
Guangxi and Liaoning
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
Active
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 8, 2016
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
GUANGXI YANGXIANG CO LTD
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 50.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 293.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 2, 2021

Disclosed by Bank Oct 3, 2016

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

IFC is considering a long-term local currency loan of up to US$50 million equivalent to Guangxi Yangxiang Co. Ltd. ("Yangxiang" or the "company"). Established in 1998 in Guigang city, Guangxi Autonomous Region, Yangxiang's main business segments include: (i) the breeding and farming of pigs, and (ii) the manufacturing of pig feed. Yangxiang is among the largest integrated pig companies in China, and the first Chinese feed company that obtained both ISO9001 and ISO14001 certifications in the sector. Headquartered in Guangxi, Yangxiang has operations in Hebei, Henan, Hunan and Liaoning provinces; all are considered frontier regions in China.The Project consists of building two breeding farms in Guigang, Guangxi, and recruiting and retaining contract farmers for hog farming (the "project"). As a result, the breeding capacity will increase by 80,000 sows and the farming capacity will increase by 2 million commercial hogs.The project has already commenced and it is expected to be completed over the next 18-24 months. The company plans to finance the project mainly through its internal cash generation and the remaining up to US$50 million equivalent is to be financed by IFC's long-term local currency loan.

The project expect to: Boost economy in the frontier regions: Yangxiang is the largest private pig company in Guangxi, a frontier region, and has presence in other frontier regions, including Henan, Hebei, Liaoning, and Hunan. The proposed Project will help improve farmers' income and boost the economy in the frontier regions.

Food Safety and Supply Chain Efficiency: The Chinese pig sector is still characterized by poor hygiene standards, inadequate bio-security, and over-use of antibiotics. By investing in Yangxiang, IFC is supporting a company with both the capacity and willingness to improve food safety. Besides positive impact on food safety, an upgrading supply chain management supported by the Project will also result in the improvement of pig farming operation and quality of output (better feed conversion ratio and lower mortality), which enhances the overall supply chain efficiency.

Farmers Reached: Currently, about 1,000 contract farmers are growing the commercial hogs for Yangxiang. The Project is expected to reach 4,000 additional contract farmers. Yangxiang is to enable the contract farmers to reduce piglet mortality and improve operational efficiency.

Investment Description
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Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

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 CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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