Summary of Investment Information
PHU MY HUNG DEVELOPMENT CORPORATION
Date SPI Disclosed
Mar 11, 2019
East Asia and the Pacific
Projected Board Date
May 10, 2019
Regional Industry - MAS Asia & Pac
Phu My Hung Development Corporation (“PMH” or the “Company”) is a Vietnamese property developer with its flagship development of Phu My Hung township in the outskirts of Ho Chi Minh City (“HCMC”). The Company is looking to expand through the development of (i) a new master-planned ecological township in Hoa Binh, as well as (ii) residential projects in HCMC targeted at the local population (the “Project”).
Project Sponsor and Major Shareholders of Project Company
The Company is 70% owned and controlled by Phu My Hung Asia Holdings (the Sponsor), a foreign investor in Vietnam since 1990s. The remaining 30% is ultimately owned by the government of Ho Chi Minh City.
Total Project Cost and Amount and Nature of IFC's Investment
Total Project cost is estimated to be US$150 million. IFC has been invited to provide a VND-denominated bond of up to US$75 million equivalent.
Location of Project and Description of Site
The Project is located in HCMC and Hua Binh.
Expected Development Impact
1. Job creation: The Project will create direct and indirect jobs through the development of the townships and purchases from local suppliers during and after construction. 2. Improved quality of life: PMH's developments create integrated and environmentally sustainable townships in Vietnam, which in addition to housing also includes commercial areas, public facilities, hospitals, schools and sports facilities. 3. Increase access to housing: The Project is expected to supply more than 5,000 housing units within the next 5-7 years.
IFC's Expected Role and Additionality
1. Financing Structure: IFC will provide VND long term fixed rate funding which is not readily available in the market since local banks mostly offer floating rate financing at short or medium term only. 2. Standard Setting on E&S best practices and Green Buildings (GB): IFC will be able to provide the Company with E&S best practices and GB/EDGE certification and assist in achieving those certifications. This Project could also be used to pilot the new EDGE Urban Communities tool, which can be used to better design their mixed-used buildings.
Environmental & Social Categorization Rationale
This is a Category B project according to IFC’s Policy on Environmental and Social Sustainability because the proposed developments have limited E&S risks and adverse impacts, such as: PMH’s E&S management capacity, including of E&S performance of third party construction contractors; labor and working conditions, including occupational health and safety (OHS); life fire and safety; waste water management; water and energy efficiency; land acquisition and economic displacement; stakeholder engagement and grievance redress mechanisms. The proposed projects for use of IFC proceeds under this investment is not expected not required physical displacement of population.
Main Environmental & Social Risks and Impacts of the Project
Please refer to the Environmental and Social Review Summary (ESRS) linked to this project SII in the IFC's project disclosure website.
Mitigation Measures / ESAP
Refer to the E &S Action Plan tab in the ESRS on the SPI (publishing) site.
For Inquiries About the Project, Contact
Phu My Hung Development Corporation
Nguyen Thi Thu Ha
+84 028 54119999 ext. 1150
10/F, Lawrence S.Ting Building, 801 Nguyen Van Linh Parkway, Tan Phu Ward, District 7, HCMC, Vietnam
For Inquiries and Comments About IFC, Contact
General IFC Inquiries
2121 Pennsylvania Avenue, NW
Washington DC 20433
Local Access for Project Documentation
The SII will be disclosed locally at the following address:
Lawrence S. Ting Building, 801 Nguyen Van Linh Parkway, Tan Phu Ward, Dist. 7, HCMC, Vietnam
Hyperlinks to Related Project Dossiers: