ADB will lend US$15 million equivalent in US dollars and Japanese yen to APH — a major grower of cut flowers in Asia — and US$5 million equivalent in Chinese yuan to Kunming Hasfarm Flowers (KHF), APH’s main subsidiary for operations in China.
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,” Lemoine added.
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, China, 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 per cent and the proportion of women in management and supervisory positions to 63 per cent by 2020.
APH is a major grower of cut flowers in Asia, with about 350 hectares of farms and about 3,000 employees.
Since its creation in 1992, APH has developed highly efficient greenhouse operations in Dalat Hasfarm, a retail distribution network throughout Viet Nam and Greenwings Japan, a wholesale distribution business in Japan. APH has operated in China since 2014 and in Indonesia in 2016.