ADB will provide a $62.5 million yuan loan to Inner Mongolia Saikexing Breeding and Biotechnology Group (SKX) and will act as the lender of record for the participation of selected commercial banks of up to $62.5 million equivalent in yuan.
Client
Inner Mongolia Saikexing Breeding and Biotechnology Group (SKX)
ADB assistance
$62.5 million loan; $62.5 million B-loan equivalent in yuan
Key features
- ADB will provide a $62.5 million yuan loan and will act as the lender of record for the participation of selected commercial banks of up to $62.5 million equivalent in yuan.
- The project will allow the company, which now owns about 100,000 cows across 27 farms, to develop 4 new farms with 20,000 cows in total.
- SKX will invest in state-of-the-art technologies that will halt the harmful discharge of untreated animal waste and use waste as fertilizer and for irrigation and energy production.
- The project will promote modern dairy farming, with better environmental sustainability and product safety.
ADB’s value addition
- Help SKX set environmental and food safety benchmarks for the People’s Republic of China’s dairy farming industry.
- Provide and mobilize long-term financing to encourage the private sector to make these investments.
- Finance several projects at the same time. ADB can finance up to 31 farms in 7 provinces and autonomous regions, ensuring wide impact.
Date approved
29 June 2016
This case study is originally published in Asian Development Bank Private Sector Operations, a brochure describing the work of ADB's Private Sector Operations Department, its main goal, sector focus, portfolios, and case studies on projects approved in 2016.
