City: Rupshi

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Established in 1972, City Group (“the Group” or “City” - https://www.citygroup.com.bd/ ) initially started with the production of mustard oil for the local market. The Group has currently more than 40 subsidiaries, incorporating fast moving consumer goods (FMCG), feed products, polyethylene terephthalate (PET) bottle, printing and packaging, ship building, media, hospital. City’s market share in Bangladesh in sugar, flour and edible oil is materially significant. City Group employs around 15,000 people. Its products are sold under the brand name of “Teer” and “Sun” through a large distribution network of 620+ dealers and agents in Bangladesh. The Group also has strong presence in wholesale market with dedicated countrywide distribution channel. City Group is governed as a family owned business.  IFC is proposing a senior secured A loan (the “Loan”) of up to EUR14 million in EUR denominated loan for a tenor of 8-years and BDT 500 million in local currency denominated loan for a tenor of up to 6 years for Rupshi Flour Mills Limited. IFC’s use of proceeds will support the Company’s investment of US$171 million for the construction and operation of a greenfield flour mill with a capacity of 5,000 metric tons / day (“MTPA”) in City Group’s Economic Zone (CEZ) which is owned and operated by City Group, in Rupshi, 30 kilometers south of Dhaka (the “Project”). The proposed Project has been incorporated as a new private limited company, Rupshi Flour Mills Limited (“RFML” or “mill” or “company”) on April 2018. The project site is located along the Shitalakshya river and adjacent to Dhaka Chittagong highway, with available water and energy utility connections. The land is developed, and the construction of the Project has already started. The commissioning of the first phase of the flour mill is scheduled in June 2021. The plant and machinery will be supplied by Buhler Ltd, (“Buhler”), which has supplied and commissioned the Group’s other flour mill (ref. Shampa Flour Mill, adjacent to the proposed Rupshi flour mill).