The Asian Development Bank (ADB) and Australis Holding signed a USD 15 million (EUR 13,62 million) convertible bond to promote climate-resilient seaweed and barramundi aquaculture in Vietnam at the end of June.
"Three billion people across the world depend on seafood for protein, even as global fish stocks fall due to overfishing and temperature rise," said Suzanne Gaboury, ADB Director General for Private Sector Operations. "ADB's assistance will support the government's efforts to develop sustainable aquaculture, particularly large-scale farming of high-value species for export. Aquaculture can support low-carbon protein production, while tropical ocean farming is more resilient to climate risks. This is our first aquaculture equity investment in Vietnam, and we are proud to partner with Australis."
The investment signed in the agreement will finance working capital to expand Australis' operations in Van Phong Bay, central Vietnam while supporting the development of a second regional production center in southern Vietnam. An additional grant of USD 3 million (EUR 2,72 million) from the Climate Innovation and Development Fund (CIDF), administered by ADB, will be added to this amount.
"ADB's financing will support the continued growth of our operations in central Vietnam as well as the development of a large new regional production hub where we've established a group of leases that will allow us to achieve 50,000 tons of annual barramundi production," said Josh Goldman, Australis CEO.
So much so that the CIDF grant to Australis' subsidiary, Greener Grazing, will support research and development of the asparagopsis taxiformis seaweed crop for commercial ocean farming. A step forward in funding will enable it to help the on-farm environment through methane reduction.
Australis Holding is driven by a commitment to sustainability, biodiversity, and social justice. They pioneer innovative ocean farming to promote environmentally-conscious and socially-responsible practices. Founder Josh Goldman's college aquaponics project sparked a lifelong journey to find a fish species that would revolutionize aquaculture. When he discovered Barramundi, he knew he had found the answer to sustainable seafood production.
Established in 1966, the Asian Development Bank (ADB) actively fosters a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. With 68 members, including 49 from the region, ADB aims to eradicate extreme poverty and promote social and economic development. By providing loans, technical assistance, grants, and equity investments, ADB maximizes its development impact and mobilizes financial resources through cofinancing operations. Through collaboration and commitment, ADB works towards a brighter future for Asia and the Pacific.
The Asian Development Bank (ADB) manages CIDF, a blended finance facility that launched in September 2021. With an initial USD 25 million commitment from Bloomberg Philanthropies and Goldman Sachs, CIDF has the potential to mobilize up to USD 500 million. It serves as a catalyst for transformative projects, promoting sustainability and addressing climate challenges while driving economic growth.