IFC to invest $30m in Pran Group

Business Report :
The International Finance Corporation (IFC) has earmarked a $30 million investment for Pran Dairy Limited (PDL) and Habiganj Agro Limited (HAL), subsidiaries of the PRAN Group, a significant entity in Bangladesh’s food and beverage sector.
This investment aims to address the hurdles confronting businesses, especially those dependent on imported raw materials due to a shortage of US dollars in Bangladesh.
This is the first of IFC’s USD term loans for working capital purposes in Bangladesh, which will enable PDL and HAL to sustain operations, boost exports, and preserve over 30,000 jobs.
Additionally, IFC will collaborate with the PRAN Group to enhance the participation of women and foster inclusion in their workplace through appropriate policies and practices.
The F&B sector is a key pillar of Bangladesh’s economy. The food processing industry accounts for approximately 13% of the manufacturing production value and employs 19% of the industrial manufacturing workforce, with a projected compound annual growth rate of 12%.
However, the prevailing shortage of foreign exchange, coupled with elevated energy prices and power shortages, has disrupted the import of raw materials while constraining the lending capacity of local commercial banks.
In light of these challenges, IFC’s longer-term US dollar financing will facilitate access to foreign exchange, assisting Bangladeshi companies in navigating the crisis.
Uzma Chowdhury, director of Finance at PRAN-RFL Group, said, “As a net importer, regular access to US dollars is crucial. However, due to the current shortage, accessing USD funds for working capital has been challenging. By providing scarce US dollar working capital, IFC will ensure the long-term stability of our operations and enable us to contribute to the country’s economic stability.”
As part of its advisory services, IFC will also aid the PRAN Group in developing the company’s smallholder sourcing supply chain in Bangladesh and identifying opportunities for decarbonizing its agro-processing operations, among other initiatives.
Martin Holtmann, IFC country manager for Bangladesh, Bhutan, and Nepal, said, “Reaffirming our commitment to supporting clients during crises, IFC’s financing seeks to alleviate the current shortage of foreign exchange while fostering private sector growth in Bangladesh.
“We are optimistic that it will enhance food security while prioritizing support for strategically important industries through innovative solutions. By supporting the PRAN Group, IFC will contribute to diversifying Bangladesh’s export base, which is crucial for job creation, expanding market opportunities, and enhancing economic resilience.”
Since 2010, IFC has invested over $3.8 billion to promote private sector growth in Bangladesh.