IFC proposes $55m investment in Bangladesh's Pran

IFC’s commitment will support the expansion of Pran’s fruit juice, biscuit, noodle and spice product lines, according to a disclosure. The capital will comprise a loan of $30 million to Pran Agro Business (PABL), along with working capital facilities of up to BDT1.6 billion ($20 million). This will cover the bulk of the projected $85 million cost of the expansion project.

Pran, founded in 1981, is Bangladesh’s leading branded food and beverage group and the country’s largest agricultural products processor. It produces more than 400 food products in 10 major categories, including snacks, dairy, confectionaries and frozen foods.

The company initially focused on the domestic market, but in 1997 it launched its export business. Today it is Bangladesh’s largest exporter of processed foods, selling products in 134 countries worldwide. Pran claims in 2016 the overseas market accounted for $150 million in revenue, from total sales of $500 million.

IFC has made several investments in Bangladesh in recent years: the development finance institution (DFI) committed $20 million to Dhaka Bank in 2017, and backed independent power producer Summit Corporation in 2016. The same year IFC also provided $165 million in debt financing to the Bangladeshi subsidiary of Singapore-based energy firm Sembcorp Utilities.

The DFI is also active as an LP in Bangladesh, having invested $20 million in Brummer & Partners’ Frontier Bangladesh II fund in 2014. IFC also backed the initial Frontier Fund, the first dedicated Bangladesh PE fund.

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• Topics
• South Asia
• Consumer
• Credit
• Bangladesh
• IFC
• Agriculture