Habiganj Agro Limited (IFC-47376)

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.
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
Mar 22, 2024
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
Pran Dairy Limited (PDL), Habiganj Agro Limited (HAL) - PRAN Group
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Agriculture and Forestry
  • Industry and Trade
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)
$ 30.00 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)
$ 30.00 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.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Mar 28, 2024

Disclosed by Bank Feb 20, 2024

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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.

As stated on the project disclosure page, the IFC will provide long-term US Dollar working capital financing to be utilized across the two group companies, Pran Dairy Limited (PDL) and Habiganj Agro Limited (HAL). 

The use of proceeds will be limited to HAL and PDL for purchase of imported raw material (flour, sugar, milk powder, vegetable fat, resin, packaging material, etc.), and operational expenditures (OPEX, spare parts, maintenance, etc.). HAL was incorporated in 2010 and contributes significantly to PRAN diverse product portfolio, specializing in confectionary, biscuits and bakery, beverages, snacks, feed meal, and flexible packaging. PDL started its operations in 2004 and its product portfolio includes dairy products (milk and milk derivatives), confectionary, bakery, carbonated soft drinks and juices.

No expansion of HAL and PDL operational footprint is considered for this project-financed loan.

Moreover, as part of an associated advisory engagement:

1.IFC will help build capacity of second-tier suppliers and franchisees of Pran on food safety, including working with smallholders to improve adoption of Good Agriculture Practices in 3-4 commodities (cassava, dairy, rice etc.); and
2. IFC will work with Pran on decarbonization initiatives – focusing on alternative fuel for electricity generation, improving efficiency of delivery of utilities, reducing demand for water, energy in processing and packaging, reducing volume of effluent and improving efficiency of Effluent Treatment Plant and potentially, converting waste to resource.

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

Accoding to the IFC, the proposed A Loan has a tenor of up to 6 years with a 2-year grace period, and will be guaranteed by two other group companies, Pran Agro Limited and Mymensingh Agro Limited.  

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.

As stated by the IFC, the group of companies known as PRAN Group was established in 1981. The Group is a leading branded food and beverage group and the largest agro-processer in Bangladesh. PRAN is a well-known household brand in Bangladesh and produces more than four hundred food products across multiple categories including juices and drinks, snacks, dairy, spices, grains, and frozen foods. PRAN exports to 145 countries around the world. 

The Project sponsors and shareholders of the Project companies consist of the children of the late Pran Group founder Major General Amjad Khan Chowdhury, Mr. Ahsan Khan Chowdhury and Ms. Uzma Chowdhury.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
PRAN Group Parent Company Industry and Trade owns Pran Dairy Limited Client 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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Habiganj Agro Limited/PRAN Dairy Limited:

Md. Saiful Islam Sajib - Assistant Manager, Corporate Finance
Phone: +88 01769-696-168 Ext:427
Email: bd40@prangroup.com
Address and Local Access to Project Documentation: PRAN RFL Center I, 105 Middle Badda, Dhaka-1212, Bangladesh
Website: https://www.pranfoods.net/

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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How it works