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Inner Mongolia Saikexing Breeding and Biotechnology Group (Saikexing) has raised a $125 million yuan denominated A/B loan from Asian Development Bank (ADB) to part fund its $160 million sustainable dairy farming and milk safety project.
The project is a debut for ADB – its first direct non-sovereign assistance to a livestock company and its first private sector agribusiness investment with a specific focus on both environmental protection and food safety.
The deal comprises two $62.5 million tranches. ADB is expected to have commercial lenders of the B loan in place in the coming weeks.
The funds will enable Saikexing – the fourth largest dairy farming company in PRC – to invest in state-of-the-art technologies that will halt the discharge of untreated animal waste and increase the use of waste for fertilizers, irrigation, and energy. It will also allow the company, which currently owns about 100,000 cows across 27 farms, to develop at least another four new farms with 20,000 cows in total. The project will be implemented over two years through to the end of 2018.