Environmentally Sustainable Agricultural Input Distribution Project (ADB-51201-001)

Countries
  • China
Where the impacts of the investment may be experienced.
Specific Location
Anhui, Hebei, Henan, Hubei, Jiangsu, Shaanxi, Shandong, Shanxi
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
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Bank Risk Rating
B
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
Sep 7, 2017
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.
Borrower
Kingenta Ecological Engineering Group/Kingfarm Agr Services/Linyi Kingfarm Cooperative Agr Services
The holder of the loan, grant, or other investment.
Sectors
  • Agriculture and Forestry
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity, Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 80.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Loan Amount (USD)
$ 50.00 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)
$ 80.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Corporate Actor Documents
Primary Source

Original disclosure @ ADB website

Updated in EWS Jan 30, 2019

Disclosed by Bank Sep 17, 2018


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Project Description

According to the bank document, the project is to partner with Kingenta, IFC and Huaxia Bank to establish a new company Kingfarm which will:

(i) set up 300 crop production service (CPS) centers that will provide a compound and specialty fertilizers, seeds, and other agricultural inputs, and agricultural services to about 3 million smallholder farmers in eight PRC provinces; and

(ii) construct 10 associated fertilizer plants to produce compound and specialty fertilizer that will serve the CPS centers and help expand the CPS market penetration.

Investment Description
  • Asian Development Bank (ADB)

Loan Ordinary capital resources USD 50.00 million (Committed)

Equity Ordinary capital resources USD 30.00 million (Committed)

Private Actors
Contact Information

Responsible ADB Division: Office of the Director General, PSOD

Responsible ADB Officer: Lemoine, Martin

Project Sponsor(s): Kingenta Ecological Engineering Group

ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main