Washington, D.C./Islamabad, November 23, 2009
—IFC, a member of the World Bank Group, has signed a $50 million financing agreement with Engro Chemicals Pakistan Ltd. to help the company expand and create jobs in Pakistan.
IFC will provide Engro with a $35 million corporate loan and a $15 million quasi-equity loan that will be convertible into common shares. Engro will use the loans to expand into the dairy business and support its corporate growth strategy of becoming a leading regional company.
“IFC has once again responded to our needs by putting together a financing package that allows us to continue expanding our business at a time when overseas financing for projects in Pakistan is limited,” said Engro CEO Asad Umar. “They have been a true long-term partner and we continue to draw on their global expertise as we position ourselves to become an industry- leading multinational.”
Engro and IFC’s relationship spans over 18 years, with IFC previously financing the company’s fertilizer, polymers, and energy businesses. Engro serves more than 3 million consumers across a range of products and employs over 4,500 people in economically depressed areas throughout Pakistan. The company also is dedicated to the development of the communities in which it operates, providing medical care and skills training to local people.
“Companies like Engro are creating the economic opportunities that people in Pakistan need to escape poverty,” said Marcene Broadwater, Global Head of IFC Chemicals. “Engro’s management team is demonstrating that with proper leadership and financing, companies in Pakistan can continue to grow and succeed despite the country’s difficult environment.”
IFC is the only international financial institution focused exclusively on the private sector, the engine of sustainable development in emerging markets. Along with IBRD, it is currently seeking a capital increase to strengthen its ability to create opportunity for the poor in developing countries—including by investing in Pakistan’s chemical sector.
About IFC
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. We foster sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. Our new investments totaled $14.5 billion in fiscal 2009, helping play a prominent role in addressing the financial crisis. For more information, visit
www.ifc.org
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About Engro Chemicals Pakistan Ltd.
Engro Chemical Pakistan Ltd. always has endeavored to embark upon new business opportunities. Its main focus remains on sustainable growth, while it ventures out on new opportunities. It has taken various growth initiatives in its core fertilizer business, notably setting up the world’s largest single train urea plant. In recent years, the company has diversified into food and power businesses, with expansion projects worth $1.6 billion. It also is actively involved in local community service around the production facility and supply chain, in key areas including health, education, and infrastructure improvements. For more info visit
www.engro.com
