FMO to provide $90-million credit package to Loc Troi Group (LTG)
FMO to provide $90-million credit package to Loc Troi Group (LTG)
Seeing huge potential in Loc Troi Group's sustainable practices and advanced agricultural expertise, the Dutch Entrepreneurial Development Bank (FMO) is supporting the company with a credit package worth $90 million.
Established in 1993, Loc Troi Group, formerly An Giang Plant Protection JSC, has become the leading agricultural service company in Vietnam with 3,500 employees, including over 1,200 agricultural engineers and hundreds of experts researching seeds, products, and crop solutions along with farming practices in line with international standards in developed markets.
Loc Troi is the only company in the world to achieve a perfect 100 for its sustainable rice production under the Sustainable Rice Platform for four consecutive years (2020–2030). Its rice production system fulfils the most strict standards in the world.
With the commitment "Together with farmers for sustainable development," Loc Troi has developed agricultural production on a large scale, linking with cooperatives and more than 300,000 farming households.
The company also provides guidance on farming practices to optimise crop activities, harvesting, and transportation. The initiatives aim to enhance production efficiency while reducing costs to ensure profits, thereby contributing to improving the quality of life in rural areas.
In a bid to advance sustainable agriculture, Loc Troi plans to roll out an integrated model of pre-financed contract farming for rice farmers. FMO, as lead arranger, intends to provide up to $90 million through two senior secured facilities to finance: expansionary capex to upgrade rice mills and warehouses in group subsidiaries and associates; and working capital to support the Integrated Model programme.
The proposed transaction intends to create jobs, strengthen food production and security, improve farmer livelihoods, mobilize private funding, strengthen climate adaptation and resiliency of rice farmers and reduce methane-related rice emissions. The vision of LTG aligns with FMO's in promoting sustainable agriculture in Vietnam.
Loc Troi is a key player in Vietnam's rice market. Rice products under the Hat Ngoc Troi brand, along with many hybrid rice varieties of Loc Troi, have won many awards at prestigious international rice competitions.
In 2015, Loc Troi won the title of "Top 3 Best Rice in the World" from The Rice Trader. At the 5 th Mainland Rice Trade Conference held in China in 2018, Loc Troi won 28 first prize in the fragrant rice segment. Over the last 10 years, the company has won a host of other prestigious awards. The company also ranked in Vietnam's Top 50 Best-Performing Companies in 2023.
