Project detail - MYMENSINGH AGRO LIMITED

MYMENSINGH AGRO LIMITED

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Who is our client

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.

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 we fund this project

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
Signing date
1/14/2016
Total FMO financing
USD 5.00 MLN
Fund
FMO
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+