MAL - PRAN (IFC-43681)

Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Jun 10, 2020
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Mymensingh Agro Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Finance
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 25.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 56.80 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Jun 26, 2021

Disclosed by Bank May 22, 2020

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank's website, this project will "support long-term working capital financing as well as financing of additional capital expenditures for wafer and aseptic lines, as well as maintenance capital expenditures at PRAN entity Mymensingh Agro Limited (“MAL") for a total project cost of approximately US$56.8 million."

Mymensingh Agro Limited, one of the PRAN group entities, is involved in the manufacture of beverages including hot filled drinks, carbonated soft drinks, mineral water, fruit-flavored drinks, candy, wafers and bakery items at its facility in Kaligonj, 40 km from Dhaka. 

This project is part of IFC's COVID-19 response, as stated on the IFC website. You can find additional information about IFC's COVID response at: 
https://www.ifc.org/wps/wcm/connect/news_ext_content/ifc_external_corporate_site/news+and+events/covid-19/covid-19-projects.
 
Investment Description
Here you can find a list of individual development financial institutions that finance the project.

According to IFC, "PRAN is an existing IFC investee. IFC approved debt investments in 2009 (project#27005 for a number of PRAN companies defined together as PRAN Group), 2011 (project#30568, for PRAN Dairy Limited expansion) and 2012 (project#31829 for Natore Agro Limited (NAL)). The most recent and only outstanding IFC investment was senior loans to PRAN group entities, PRAN Agro Business Limited (PABL), PRAN Agro Limited (PAL) and NAL which were committed in 2019. In addition, the Group has been a client of the IFC Food Safety Advisory team, who has worked with PRAN on food safety issues since 2016. IFC has also provided advisory support to PRAN for development of corporate E&S management framework."

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - MYMENSINGH AGRO LIMITED Client -
- - - - PRAN Group Parent Company -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Mymensingh Agro Limited
Mr. Nirupam Dutta
+88-2-9881792
bd26@prangroup.com
PRAN-RFL Center, 105 Middle Badda, Dhaka-1212, Bangladesh
https://www.pranfoods.net/


ACCOUNTABILITY MECHANISM OF IFC

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org. You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org/

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