Recently, the letter of intent exchange ceremony between FMO and Loc Troi Group Joint Stock Company was held under the witness of Prime Minister Pham Minh Chinh and Dutch Prime Minister Mark Rutte, within the framework of the Vietnam - Netherlands High-Tech Business Forum.
As an agricultural service group in Vietnam, Loc Troi (LTG) has been making efforts every day to fulfill its mission of “Sustainable development with farmers”. FMO – the Dutch Enterprise Development Bank, a credit institution rated AAA by the two leading rating agencies in the world, Fitch and Standard & Poor's, shares the same operating direction with LTG, which is to promote sustainable agricultural development.
Letter of Intent Ceremony between FMO and Loc Troi Group Joint Stock Company
FMO selected LTG for funding based on a careful, detailed fact-checking process and in accordance with international standards on environmental protection, social stability and transparent governance (ESG). LTG chose to receive FMO funding based on the stability of its funding sources and its consistency in the direction of sustainable agricultural development. The cooperation between the two parties improves farmers' lives, ensures food security, mobilizes private capital, enhances climate resilience, and reduces greenhouse gas emissions.
For nearly 2 years, experts from the Dutch Enterprise Development Bank of FMO have directly visited Vietnam many times. In addition, independent international appraisal units have come to Vietnam twice (1 week/time) to visit LTG factories in the Mekong Delta provinces, and hundreds of online meetings between the two sides.
In addition, the partner also conducted interviews with many departments and all entities in LTG's production and business value chain such as human resources, purchasing staff, HSE department, logistics, administration, distribution, 3 Together force, trade unions, official and seasonal workers, farmers, local authorities, and people around the production area.
Furthermore, LTG has also demonstrated in practice the strict application of labor regulations, child labor, gender equality, supplier evaluation process, land procedures, environmental pollution levels, and improvement of people's lives in LTG's operating areas...
FMO has seen the reality that LTG's production and business activities are positively impacting the environment, society, working conditions, reducing waste and using resources effectively, maintaining public health, preserving biodiversity, managing land resources... and agreed to grant a credit limit of 90 million USD (more than 2,100 billion VND).
With this $90 million funding, LTG is committed to continuing to develop sustainable agriculture.
This credit is committed to be used for both short-term and long-term purposes, in which short-term credit is for capital financing items linked to sustainable rice production; medium- and long-term credit is for agricultural infrastructure including machinery and warehouses at 10 rice mills of members in the Loc Troi agricultural ecosystem to improve LTG's rice production and supply capacity.
With this funding of 90 million USD, 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 across the country, to domestic and international rice consumers, contributing to the sustainable development of Vietnamese and world agriculture .
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