Ashurst advises SMBC on first IFC-backed agriculture warehouse financing in Vietnam
13 September 2023
Global law firm Ashurst advised Sumitomo Mitsui Banking Corporation ("SMBC"), as lender and arranger, on the first commodity-backed warehouse finance loan jointly provided by IFC and SMBC to Thanh Thanh Cong - Bien Hoa Joint Stock Company ("TTC AgriS"), a significant Vietnamese local agricultural enterprise. TTC AgriS is the first company in Vietnam that IFC has provided such a loan to provide the necessary working capital to TTC AgriS by leveraging its commodities in storage as a collateral.
The facility falls under the IFC's Global Warehouse Finance Program (GWFP), which will especially help boost the local warehouse financing market in Vietnam, which is still at a nascent stage. The funding will encourage local banks to participate in the agribusiness value chain to optimize agri-financing opportunities in this high-potential sector.
Previously, TTC AgriS stated that it considers the cooperation with IFC and SMBC as vital to its circular economy development strategy, aligned with its goal of transforming into an integrated economic business model. This transformation will solidify its position as a comprehensive agriculture solutions provider in Vietnam and the region.
The transaction was led by partner Jean Woo, supported by Jake Sng and Ernest Koh.
