Original disclosure @ IFC website
Updated in EWS Oct 27, 2022
Disclosed by Bank May 5, 2022
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IFC is proposing a senior secured A loan of up to $20 million in Rupshi Food Limited (“RFL”), a newly established subsidiary of the City Group, for processed food operations in the snacks category, producing candy, cakes, biscuits and bakery items, condensed milk and powdered milk by setting up a greenfield food processing plant at City Economic Zone (CEZ), an economic zone established by the Group in Rupshi, 30 kilometers south of Dhaka (the “Project”) in the same economic zone as Rupshi Flour Mills.The project facility is for food production processing such as, mixing of ingredient, molding, baking, cooling, packaging, etc. The project is currently in the construction stage and is expected to start commercial operation in a phased manner and be fully functional by January 2023.
The Group is an existing IFC client whereby IFC made one direct investment in the Group's subsidiary, namely Rupshi Flour Mills Limited (RFML), in August 2021 and the E&S performance at the appraisal was satisfactory.
Aggregate total Project cost is estimated at ~US$122.4 million and is proposed to be financed with long-term debt totalling US$83.3 million with the balance US$39.1 million through equity.
Proposed IFC investment is an A Loan of up to US$20 million with a tenor of eight years including a two-year grace period.
Established in 1972, City Group (the “Group” - https://www.citygroup.com.bd/) initially started with the production of mustard oil for the local market. The Group has currently more than 40 subsidiaries, incorporating fast moving consumer goods (FMCG), feed products, polyethylene terephthalate (PET) bottle, printing and packaging, ship building, media, hospital.
|Private Actor 1||Private Actor 1 Role||Private Actor 1 Sector||Relation||Private Actor 2||Private Actor 2 Role||Private Actor 2 Sector|
|City Group||Parent Company||Agriculture and Forestry||owns||Rupshi Flour Mills Limited||Subsidiary||Agriculture and Forestry|
|City Group||Parent Company||Agriculture and Forestry||owns||Rupshi Foods Limited||Subsidiary||Agriculture and Forestry|
Rupshi Foods Limited
Mr. Tanvir Hyder Pavel
Director – Finance and Commercial
Plot # NW (J) 06, Road # 51, Gulshan 02, Dhaka – 1212
www.citygroup.com.bd ACCESS TO INFORMATION
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