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Who is our client

Dutch-Bangla Pack (DBP) is a joint venture between LC Packaging International B.V. (LCP) and Bangladeshi investors active in the packaging industry. DBP starts its commercial production in 2008 and is now a leading producer of high quality Flexible Intermediate Bulk Container (FIBCs) in Bangladesh. It produces high-end FIBCs that are mainly used for food, pharmaceuticals and specialty chemicals.

Funding objective

The proposed funding will be used for CAPEX in the first stage expansion of DBP. CAPEX mainly relates to the purchase of state-of-the-art machinery from German, Austrian, Turkish and Indian suppliers. Contingencies are 10% of construction cost.

Why we fund this project

The proposed project is related to a Dutch interest client investing in one of the least developed countries. The project is inclusive and has significant development impact. In addition, we had 7-year excellent experience with LCP. In 2010, FMO provided a USD 1.5mln FOM loan to LCP, which was on lent to DBP as shareholder loan. LCP has shown an impeccable track record with regard to servicing its debt according to schedule as well as timely and openly reporting.

Environmental and social rationale

E&S categorization was until now B+ as the potential E&S risks a/o impacts limited, few in number and generally site specific, largely reversible and readily addressed through mitigation measures. Attention is given on efficient use of resources (water, energy and raw materials), waste management, as well as supervision over use of hazardous substances and waste, which will be further enhanced by the recycling project. Relevant IFC Performance Standards are: 1 Assessment and Management of Environmental and Social Risks and Impacts; 2 Labour and Working Conditions; 3 Resource Efficiency and Pollution Prevention; 4 Community Health, Safety and Security. 5 Land Acquisition and Involuntary Resettlement IFC Performance Standards 6 to 8 are not applicable: 6 Absence of Biodiversity Conservation areas in the area; 7 No indigniuous people are affected; 8 there is no cultural heritage at the location nor in the vicinity. Applicable are IFC Performance Standards, General IFC EHS Guidelines for A and B+ projects and the sector-specific EHS guideline: Textiles Manufacturing.

Agribusiness, Food & Water
Signing date
Total FMO financing
USD 3.00 MLN
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)