| Project Detail |
Project Name Thai Union Sustainable Shrimp Value Chain Project Project Number 58263-001 Borrower / Company Thai Union Group Public Company Limited Country / Economy Thailand Senior unsecured 5-year loan with sculped amortization, to be provided as an ADB A loan of $25 million in USD and $25m equivalent in THB, and an ADB B loan of $100 million. Proceeds of the facilities will finance TUs permanent working capital needs for the procurement of sustainable shrimp in Thailand and operating expenses associated with TUs sustainability budget for its sustainable shrimp commitment. Sustainability activities will include extension services, training and advisory, R&D, certifications support, and pilot sustainability projects in Thailand. A complementing TA (funded by trust funds) will support the capacity building of shrimp farmers in Thailand in climate-smart aquaculture practices. The shrimp procured by Thai Union using the proceeds of the facilities will be responsibly sourced through a certification that has been benchmarked by Global Sustainable Seafood Initiative (GSSI) and is stated as GSSI-Recognized, or through a credible Aquaculture Improvement Program (AIP). The most common GSSI-Recognized certifications are Aquaculture Stewardship Council (ASC) Shrimp Standard and Best Aquaculture Practices (BAP) Farm Standard. An AIP is a structured framework that brings together multiple stakeholders to drive improvements in aquaculture production. A credible AIP must include a clear, timebound work plan with defined actions and tasks. The project should aim to achieve a sustainability certification recognized by GSSI or demonstrate measurable progress toward sustainability best practices. Additionally, it must ensure transparency through public reporting, providing regular updates on actions taken and improvements made. The proposed transaction, which includes a $100 million Blue B loan mobilized from private investors, is designed to enhance the resilience of shrimp farmers while facilitating a transition from traditional practices to more sustainable and environmentally responsible shrimp farming. The project focuses on capacity building through certifications and improved farming practices to address climate impacts on shrimp farming. Participation of shrimp farmers in these certifications, as well as Thai Unions AIP introduced by the project will systematically increase farmers capacity to adapt to climate conditions. |
