MANILA, PHILIPPINES (1 December 2017) — The Asian Development Bank (ADB) today signed $20 million in loan agreements with Agripacific Holdings (APH) and Kunming Hasfarm Flowers (KHF) to help develop high-value horticulture in Viet Nam, the People’s Republic of China (PRC), and Indonesia.
ADB will lend $15 million equivalent in US dollars and Japanese yen to APH—a major grower of cut flowers in Asia—and $5 million equivalent in Chinese yuan to Kunming Hasfarm Flowers (KHF), APH’s main subsidiary for operations in the PRC. The transaction is ADB’s first private sector loan denominated in Japanese yen outside the financial sector.
“Agricultural development is key to eradicating poverty and creating conditions for sustainable and equitable growth in developing Asia,” said Martin Lemoine, Agribusiness Investment Unit Head in ADB’s Private Sector Operations Department. “Our partners have a strong domestic and export-oriented business model that acknowledges the importance of developing value-added crops through high-end technology, integration of climate-resilient farming, and gender-inclusive policies.”
ADB’s financing will help APH scale up and transfer its successful business model built on the introduction of climate-controlled greenhouse technology and a vertically-integrated business geared towards domestic and export markets. It will help expand the flower business in Viet Nam, the PRC, and Indonesia. The model will also be replicated for sustainable vegetable production in Viet Nam.
Under the terms of ADB’s financing, APH has committed to implement a gender action plan that will increase the proportion of women employees to 65% and the proportion of women in management and supervisory positions to 63% by 2020.
APH is a major grower of cut flowers in Asia, with about 350 hectares of farms and about 3,500 employees. Since its creation in 1992, APH has developed highly efficient greenhouse operations in Da Lat, Viet Nam, a retail distribution network throughout Viet Nam under the brand name "Dalat Hasfarm", a wholesale distribution business in Japan (Greenwings Japan), and since 2014 has operated in the PRC. Expansion to Indonesia started in 2016.
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 celebrating 50 years of development partnership in the region. It is owned by 67 members—48 from the region. In 2016, ADB assistance totaled $31.7 billion, including $14 billion in cofinancing.