Rupshi Foods (IFC-46329)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Specific Location
Rupshi
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
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 30, 2022
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
RUPSHI FOODS LTD.
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
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)
$ 20.00 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.
Loan Amount (USD)
$ 20.00 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)
$ 122.40 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 Oct 27, 2022

Disclosed by Bank May 5, 2022

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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.

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.

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

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.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

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

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.

Rupshi Foods Limited
Mr. Tanvir Hyder Pavel
Director – Finance and Commercial
+8809611611777
pavel@citygroupbd.com
Plot # NW (J) 06, Road # 51, Gulshan 02, Dhaka – 1212
www.citygroup.com.bd ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

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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