Xiang Nian (IFC-38881)

Countries
  • China
Geographic location where the impacts of the investment may be experienced.
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
Proposed
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."
Borrower
HENAN XIANG NIAN FOODS 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
  • Construction
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Equity
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 10.00 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)
$ 47.00 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 Dec 11, 2019

Disclosed by Bank Apr 26, 2017

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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.

The proposed investment is a $10 million equity investment in Henan Xiang Nian Foods Co. Ltd (“XN”), a Chinese wheat based noodle manufacturer with a total production capacity of 100,000 tons of dry noodles per annum located in Nanyang City, Henan Province. XN produces wheat noodles by combining wheat flour, salt, water, heating, forming, air drying, sizing and packaging into 500, 750, 900 and 1000 gram packets intended for retail sale. Collection of wheat and distribution of end product is conducted by XN with its own vehicle fleet. The existing XN factory is located within a city authority-designated industrial park. In 2015 XN acquired a milling company, Henan Khong Guan Cereal and Oil Food Products Co. Ltd (HKG) that will supply 45% of wheat flour needs to the noodle factory, balance of wheat flour is sourced from other commercial mills in the province. The wheat supply base is 95% from Henan province with the balance of grain demands purchased through traders. The HKG mill is located within the suburban fringe of Nanyang.

The proposed investment is to support land purchase, XN noodle factory expansion 140 mu (or 9.5 hectares,) within the designated industrial zone, and working capital.

The scope of the appraisal is XN and HKG the (“group”.)

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

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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