Habiganj Agro Limited

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The proposed IFC investment consists of a loan up to US$30 million to support working capital needs of PRAN Group (or the “Company”) in Bangladesh. The PRAN Group is one of the leading branded food and beverage companies and the largest agro-processor in Bangladesh. The use of proceeds will be limited to two Group companies i.e. HAL (Habiganj Agro Limited) and PDL (Pran Dairy Limited) for purchase of imported raw material (flour, sugar, milk powder, vegetable fat, resin, packaging material, etc.), and operational expenditures (OPEX, spare parts, maintenance, etc.) (“the Project”). HAL was incorporated in 2010 and contributes significantly to PRAN diverse product portfolio, specializing in confectionary, biscuits and bakery, beverages, snacks, feed meal, and flexible packaging. PDL started its operations in 2004 and its product portfolio includes dairy products (milk and milk derivatives), confectionary, bakery, carbonated soft drinks and juices. The loan will be guaranteed by IFC investee PRAN Group companies, such as MAL (Mymensingh Agro Limited) and PAL (Pran Agro Limited) as corporate guarantors. No expansion of HAL and PDL operational footprint is considered for this project-financed loan.This would be IFC’s sixth investment in PRAN Group since 2009. Previous investments are available at: https://disclosures.ifc.org/project-detail/ESRS/27005/pran; https://disclosures.ifc.org/project-detail/ESRS/30568/pran-dairy; https://disclosures.ifc.org/project-detail/ESRS/31829/pran-natore-agro; https://disclosures.ifc.org/project-detail/ESRS/40929/pran-agro-business-ltd; and https://disclosures.ifc.org/project-detail/ESRS/43681/mal-pran.  The E&S performance of PRAN Group’s projects in portfolio has been satisfactory.