Vietnam's leading pepper exporter secures up to $25 million loan
Mai KieuAugust 14, 2024 | 09:58 AM GMT+7
Phuc Sinh Corporation, a leading Vietnamese coffee and pepper exporter, has secured an investment of up to $25 million from SAIL Investments through its &Green Fund.
This is the first investment by the &Green Fund into a Vietnamese enterprise, marking a significant milestone for Vietnam's agricultural sector in attracting sustainability-focused investments from the international financial market.
The &Green Fund, which aims to decouple deforestation from tropical commodity production, will provide financing for Phuc Sinh to advance its transformation towards a deforestation-free sustainable coffee value chain.
The due diligence process for this investment extended beyond financial and legal matters, thoroughly addressing environmental and social risks.
Phuc Sinh, established in 2001, has built a strong reputation in the agricultural sector, being one of the pioneers in digital transformation in agriculture. Since 2007, it has become Vietnam's leading pepper exporter, accounting for 8 per cent of the global market share.
It was also among the first companies in Vietnam to achieve Rainforest Alliance certification in 2014 and has since obtained more than 20 certifications related to sustainable development.
"This investment is an important step in Phuc Sinh's sustainable development strategy," said Phan Minh Thong, chairman of the board of directors. "We are committed not only to improving product quality but also to ensuring that our production process contributes to environmental protection and community support."
With the backing of SAIL Investment’s &Green Fund, Phuc Sinh is set to enhance the transformation of Vietnam’s coffee industry towards traceable, deforestation-free supply chains. The company aims to improve product quality and expand its production, promoting Vietnamese, sustainably produced products on a global scale.
By adopting responsible agricultural practices, Phuc Sinh seeks to set a benchmark for the industry, contributing to ecosystem preservation and promoting resilient livelihoods in Vietnam and beyond.