Nafoods Group (IFC-41576)

Countries
  • Vietnam
Geographic location where the impacts of the investment may be experienced.
Specific Location
Gia Lai province - Central Highlands Region
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
Approved
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
NAFOODS GROUP JOINT STOCK COMPANY
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
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)
$ 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)
$ 28.20 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.
Corporate Actor Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 1, 2024

Disclosed by Bank Jan 24, 2019

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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.

According to the bank document, the proposed investment consists of a loan of up to US$10 million with 50% convertible into Nafoods Group Joint Stock Company (“Nafoods” or the “Group”) common shares.

Established in 1995 Nafoods is a Vietnamese group dedicated to fruit production and processing through facilities spread across the country with a combined area of 120 hectares: one head office in Vinh City, two fruit processing factories in Long An province – Nafoods Southern Joint Stock Group (NFS), and Naprod Nghe An factory with the Chanh Leo Nafoods (CLN) nursery, farm, and passion fruit research center in Nghe An Province.

The use of proceeds from IFC loan will be used for the expansion of NFS Long An facility production lines, acquisition of 10.2 hectares of land in Gia Lai Province for a dedicated passion fruit-packing house and concentrate processing, and permanent working capital.

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

The Project is expected to cost US$28.2 million which would be funded by:

(i) an up to US$8 million denominated corporate bond which is convertible into common shares of the Company;

(ii) internally generated cash, and

(iii) equity/ bank borrowings.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

Nafoods is a publicly listed company on the Ho Chi Minh Stock Exchange. The Company is 24.3% held by its founding Chairman, Mr. Nguyen Manh Hung, 52.7% by his relatives and associates, 5.3% by Endurance Capital Vietnam Limited, a boutique investment fund domiciled in the British Virgin Islands. The remaining shareholding of 17.7% is a public float.

Mr. Nguyen Manh Hung established a beverage manufacturing company in 1995 which became Nafoods in 1995 and has been the Chairman and CEO of Nafoods since then.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Endurance Capital Vietnam Limited Investor -
- - - - NAFOODS GROUP JOINT STOCK COMPANY Client -

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.

1/ The Project Contact

Nafoods Group Joint Stock Company 
Contact: Ryan Galloway - Chief Growth Officer 

Phone No.: (+84) 936 611 739 

Email: Ryan@nafoods.com 

Address: No.47, Nguyen Canh Hoan street, Quan Bau ward, Vinh city, Nghe An province, Vietnam 

Website: https://nafoods.com/ 

2/ The IFC Contact

General IFC Inquiries
IFC Communications
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384

3/ Local Access for Project Documentation

Contact: Ryan Galloway - Chief Growth Officer 

Nafoods Group Joint Stock Company 

Phone No.: (+84) 936 611 739 

Email: Ryan@nafoods.com 

Address: No.47, Nguyen Canh Hoan street, Quan Bau ward, Vinh city, Nghe An province, Vietnam 

Website: https://nafoods.com/ 

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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