ADB $125m support for Saikexing dairy expansion

12-Jun-2017 - Last updated on 13-Jun-2017 at 08:26 GMT

Related tags Inner mongolia Milk People's republic of china

The Asian Development Bank (ADB) has signed agreements in Hohhot, Inner Mongolia, with commercial banks to support Inner Mongolia Saikexing Breeding and Biotechnology Group (Saikexing) to expand the domestic supply of milk in China.

Support will also extend to reducing environmental pollution and improving food safety.

The Korea Development Bank, the mandated lead arranger, and Fubon Bank (China) Co., Ltd., the lead arranger, participated in the onshore yuan complementary loan. Bank of China was the participation agent.

The loan is in addition to ADB’s direct onshore yuan loan to Saikexing in August 2016.

ADB’s financing package totaling up to $125m equivalent will enable Saikexing — China’s fourth largest dairy farming company — to invest in technologies to help reduce environmental pollution and improve dairy farm management practices.

Farm expansion

It will also allow the company, which currently owns in excess of 100,000 cows across 27 farms, to develop at least another four new farms with 20,000 cows in total.

ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.

Established in 1966, ADB is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7bn, including $14bn in cofinancing.