Loc Troi signed a LoI on a credit amount of USD 90 million

Loc Troi Group Joint Stock Company (LTG) has just signed and exchanged a Letter of Intent to finance a $ 90 million credit package between LTG and the Dutch Entrepreneurial Development Bank (FMO). The signing ceremony was carried out on November 2, with the witness of Vietnamese Prime Minister Pham Minh Chinh and Dutch Prime Minister Mark Rutte, at Samsung R&D Center, Hanoi.

As the leading agricultural service corporation in Vietnam, Loc Troi (LTG) has been making efforts every day to carry out the mission of "Accompanying farmers in sustainable development". These efforts and commitments have led many partners to LTG on a journey of 30 years of continuous development.

FMO, a credit institution rated AAA by both the world's leading rating agencies, Fitch and Standard & Poor's, shares the same operating orientation as LTG, which is to promote sustainable agricultural development. FMO chooses to sponsor LTG based on a careful, detailed factual verification process and according to international standards on environmental protection, social stability and transparent governance (ESG).

LTG chose to receive FMO capital based on the stability of capital sources and consistency in the direction of sustainable agricultural development. The cooperation of the two sides improves farmers' lives, ensures food security, mobilizes private capital, enhances climate adaptation, and reduces greenhouse gas emissions.

During nearly 2 years, FMO experts have directly visited Vietnam many times, in addition, independent international appraisal units visited LTG's factories in the Mekong Delta, and there were hundreds of online meetings between the two sides. The partner also interviewed many departments, divisions and all subjects in LTG's production and business value chain such as human resources, purchasing staff, HSE department, logistics, administration, distribution, "3 accompanying" forces, trade unions, official and seasonal workers, farmers, local authorities, and people around the production area.

Moreover, LTG has also proven in practice their strict application of labour regulations, the use of child labour, gender equality, supplier evaluation process, land procedures, environmental pollution levels, and improving people's lives in LTG's operating areas...

FMO was reassured and confident when seeing the fact that LTG's production and business activities are having a positive impact on the environment, society, working conditions, reducing waste and using resources effectively, keeping public health safe, preserving biodiversity, land resource management... and agreed to grant a credit limit of $ 90 million (more than VND 2,100 billion).

This credit is committed to being used for both short-term and long-term purposes, accordingly, short-term credit is for financing items linked to sustainable rice production; Medium and long-term credit are for agricultural infrastructure including machinery and warehouses at 10 rice factories of members of the Loc Troi agricultural ecosystem to improve LTG's rice production and supply capacity.

With this $ 90 million funding, LTG is committed to continuing to develop sustainable agriculture, including partners in the supply chain, improving farmers' lives and building a livable rural environment. LTG believes that together with FMO, this investment will bring many benefits to farmers in all parts of the country, serving domestic and international rice consumers, and contributing to the sustainable development of Vietnamese and world agriculture.