Dhaka, Bangladesh, March 17, 2009
—IFC, a member of the Word Bank Group, will provide a $15 million loan to Bangladesh’s PRAN Group to help the country’s leading agro-processing company modernize and expand support to local suppliers and small farmers while creating additional jobs.
The transaction marks the first time IFC has financed a project in Bangladesh’s strategically and economically important agribusiness sector. The loan will support PRAN Group’s strategic investment plan over the next three years, helping the company become more efficient and more competitive in domestic and foreign markets.
PRAN aims to make high-quality, low-cost, processed and packaged food readily available to the lower- and middle-income population of Bangladesh and other countries it serves. PRAN Group is one of the most popular and recognizable brands in the country, with a presence in six food categories; snacks, confectionery, juices and other beverages, culinary products, dairy, and premium rice.
“With IFC as a partner, we will continue to seek the highest standards in our operations, and these efforts will enhance Bangladesh’s entire agribusiness sector,” said PRAN’s Deputy Managing Director, Ahsan Khan Chowdhury.
Despite Bangladesh’s increasing urban population, processed and packaged food is not easily available to a large part of the population. Local food processors are not abundant, which means a loss of job opportunities and a waste of perishable agricultural products.
“One of IFC’s main priorities in the region is to support local companies in priority sectors such as food processing, particularly those with significant benefits to local suppliers and employment,” said Per Kjellerhaug, Regional Manager for IFC-Bangladesh, Bhutan, Maldives, Nepal & Sri Lanka.
Oscar Chemerinski, IFC Director for Global Agribusiness, said: “IFC is proud to be making its first investment into the critically important agribusiness sector in Bangladesh. We are excited to support a highly regarded company like PRAN Group to further serve the local market and expand its reach in the global arena.”
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 $16.2 billion in fiscal 2008, a 34 percent increase over the previous year. For more information, visit
www.ifc.org
.
