Ashurst Advised SMBC on Commodity-Backed Warehouse Finance Loan to Vietnamese Agribusiness
Global law firm Ashurst has advised Sumitomo Mitsui Banking Corporation (SMBC) on the first commodity-backed warehouse finance loan provided by the International Finance Corporation (IFC) and SMBC to Thanh Thanh Cong - Bien Hoa Joint Stock Company (TTC AgriS), a Vietnamese agricultural enterprise. The loan will provide TTC AgriS with the necessary working capital by leveraging its commodities in storage as collateral.
The facility is part of IFC's Global Warehouse Finance Program (GWFP), which aims to boost the local warehouse financing market in Vietnam. The market is still in its early stages, and this funding will encourage local banks to participate in the agribusiness value chain and optimise agri-financing opportunities in this high-potential sector.
TTC AgriS has previously stated that it sees cooperation with IFC and SMBC as essential to its circular economy development strategy, which is in line with its goal of transitioning to an integrated economic business model. This transformation will strengthen its position as a comprehensive agriculture solutions provider in Vietnam and the region.
The transaction was led by partner Jean Woo, supported by Jake Sng and Ernest Koh.