People
This transaction is expected to support c. 3,800 jobs in construction and operation, with c. 45 per cent of the operational workforce to be women.
| Company | GuarantCo |
| Agriculture-supporting infrastructure | |
| Country | Cambodia |
| Total Project Cost | USD 50m |
| PIDG Commitment |
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| Dates of PIDG involvement |
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With a 22 per cent share of gross domestic product in 2018, the agricultural sector continues to contribute to Cambodia’s economic growth, although not to its full potential. Cambodian crops have not met their full production and export potential. A lack of modern equipment, facilities, technical skills and technology has limited its ability to process agricultural products domestically to meet market demand, with only ~10 per cent of Cambodia’s agri-outputs being processed in country (ADB). Cambodia’s capital market is underdeveloped to service this sector as it is exclusively focused on infrastructure-related issuances.
PIDG provided a USD 50 million payment default guarantee to support a bond issuance by Daun Penh Agrico, a fully owned subsidiary of THACO Agri, the agriculture arm of Truong Hai Group Corporation (THACO). The bond forms part of a financing package for the expansion of fruit production and agri-processing for bananas, pineapples and mangoes in Cambodia’s Ratanakiri province. The investment is expected to increase export-oriented production capacity.
This transaction is expected to support c. 3,800 jobs in construction and operation, with c. 45 per cent of the operational workforce to be women.
THACO Agri is a significant regional producer operating through a circular farming model, where farm by-products feed livestock whose manure fertilises crops, creating a fully integrated cycle from cultivation to sales.
Anticipated to increase export revenues significantly (>USD 350 million) over the eight-year tenor of the guarantee.
The transaction is Cambodia’s first corporate bond in the agricultural sector and THACO’s first bond issuance outside of Vietnam.
Mobilised USD 109.4 million of private sector investment through the first bond issuance in the agricultural sector in Cambodia.
