PRAN VII

pending

The proposed IFC investment consists of a loan up to US$35 million to support expansion 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. Mymensingh Agro Limited (MAL), for the expansion of its beverage manufacturing capacity within its existing facility at Kaligonj and PRAN Dairy Limited (PDL), to increase milk production and dairy based products and strengthening of its supply chain (“the Project”). PDL as part of the Project, plans to install additional silos, machines, conveyor systems and finished goods store at their existing facility at Narshindhi and a new unit for manufacturing sliced cheese at their existing PRAN Dairy Complex (PDC) at Shahjadpur as well as strengthen their milk supply chain by establishing three new mother hubs (regional milk aggregation facilities) and 20 village milk collection centres (VMCCs) along with 13 additional collection points. MAL started operations in 2010 and manufactures a wide range of beverages, including hot-filled drinks, carbonated soft drinks, mineral water, and fruit-flavoured drinks, along with candy, wafers, and bakery items; it also produces printing and packaging materials (for internal use and other PRAN entities). PDL started 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, PDL, HAL (Habiganj Agro Limited) and PAL (PRAN Agro Limited) as corporate guarantors.This would be IFC’s seventh investment in PRAN Group since 2009. Information on active investments are available athttps://disclosures.ifc.org/project-detail/ESRS/43681/mal-pran; https://disclosures.ifc.org/project-detail/ESRS/47376/habiganj-agro-limited. The E&S performance of PRAN Group’s projects in portfolio has been satisfactory.