MYMENSINGH AGRO LIMITED
Status: Completed investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
PRAN-RFL Group (PRAN) is one of the prime conglomerates in Bangladesh. It was founded in 1981 and became the largest food and nutrition company of the country. The company's principal activities are the manufacturing and sale of fruit juices, snacks, soft drinks, cakes and dairy products (under the PRAN brand). Activities are also related to the plastics industry which are sold under the RFL brand.
What is our funding objective?
FMO was invited by Proparco to co-finance MymenSingh Agro Ltd (MAL), which is the largest company of the PRAN-RFL Group. Proparco and FMO finance the expansion of MAL's production facilities related to their mango juice, mineral water and soft drinks activities. The facility will also refinance part of the local long-term loans. The transaction concerns a 7 years senior secured USD 13 million facility, in which Proparco and FMO participate for USD 8 million and USD 5 million respectively.
Why do we fund this investment?
Long-term USD funds are not available from local commercial banks. In addition, the Lenders will assist PRAN in establishing environmental, social and corporate governance improvements which would have considerable positive impact on PRAN. The Project will also create economic growth through job creation, both direct and indirect.
- Region
- Asia
- Country
- Bangladesh
- Sector
- Agribusiness, Food & Water
- Effective date
- 1/14/2016
- End date
- 3/8/2017
- Total FMO financing
- USD 5.00 MLN
- Funding
- FMO NV
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Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+