Engro Fert LCY

pending

 The proposed IFC investment comprises of a Partial Guarantee (PCG) to be issued by IFC in favor or a commercial bank, which is providing a local currency loan to Engro Fertilizer Limited (Engro Fert or the “Company” - https://www.engrofertilizers.com). The use of proceeds is intended to finance: (i) permanent working capital and maintenance capital expenditure (CAPEX) for Engro Fert’s three existing fertilizer manufacturing plants, specifically the 'Base' and 'EnVen' plants located in Daharki, which have urea production capacities of 975 KT p.a. and 1,300 KT p.a., respectively, along with Zarkhez NPK plant in Port Qasim (Karachi) with a capacity of 100 KT p.a.; (ii) the EnVen turnaround in 2024, aimed at upgrading and maintaining the 'EnVen' urea plant to enhance its energy efficiency and operational reliability; and (iii) Engro Fert’s farmer outreach and advisory programs. The residential communities in proximity to the Engro fertilizer’ plants in Daharki include the Mari Gas residential colony and the Engro Fertilizer residential colony, which are adjacent to the south and southeastern boundaries of the plants, respectively, as well as approximately six local community villages with a buffer zone of 0.76 to 1.6 km from the plant. The Zarkhez NPK plant is located in the Eastern Industrial Zone (EIZ) of Port Qasim, a designated industrial and port area in the southern part of the Malir District. Port Qasim spans approximately 12,000 acres, primarily dedicated to industrial use, including zones like EIZ, NWIZ, and SWIZ, and houses facilities such as terminals, power plants, and manufacturing units. It is situated adjacent to Bin Qasim Town, an administrative subdivision and residential neighborhood located to the north of the port area. IFC has a long-standing relationship with Engro Fert, with previous investments including the Engro Retrofit & Expansion Project (#7554), Engro Corporate Project (#27933), and the Engro Pakistan Emergency Investment Facility Project (#30186). While previous investments have supported Engro Fert's growth, the E&S performance of some past projects, particularly Project #30186, did not achieve IFC PS compliance at exit in 2015. Engro Fert has significantly improved its E&S management system since then and has closed all pending PS gaps by 2019. This new investment aims to further strengthen Engro Fert’s E&S performance, aligning with IFC’s sustainability objectives.