Mr. Fazlur Rahman founded City Group in 1973. City Group is a conglomerate based in Bangladesh, consisting of leading food processing and packaged product companies amongst its various other businesses. City Group entities are owned by Mr. Rahman, Mrs. Rahman, and their grown-up children Mr. Md. Hasan, Ms. Shampa Rahman, Ms. Farzana Rahman, and Ms. Razia Sultana Deepa.

Together, Mr. Rahman, Mrs. Rahman, and their son Mr. Md. Hasan owns 100% of Rupshi Flour Mills (as of October 31, 2020).

The total project cost is estimated to be ~US$171 million and is proposed to be funded 70% by debt of ~US$120 million and 30% by the Sponsor’s equity contribution of ~US$50 million. The debt is proposed to be a mix of foreign currency and local currency debt.

The proposed IFC investment is a secured A Loan of ~EUR 14 million and ~BDT 500 million with a tenor of up to eight years including a two-year grace period. This investment is expected to be utilized for capital expenditure to be incurred for the Project (including on plant & machinery, other equipment, building and other construction costs).

The Project is located in in City Economic Zone in Rupshi, 30km south of Dhaka, Bangladesh. City Economic Zone is on 78 acres of land at the bank of river Shitalakshya.

   This is a category B project according to IFC’s 2012 Policy on Environmental and Social Sustainability because a limited number of specific E&S impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. Key environmental and social (E & S) issues associated with this project include: (i) the existence and implementation effectiveness of EHS management systems, (ii) assurance of fair, safe and healthy working conditions in compliance with local regulatory requirements and relevant Performance Standards during the construction and operation of the proposed mill; (iii) resource efficiency of the operations (mainly energy); (iv) life and fire safety management, including emergency preparedness and response plan; (v) structural and electrical safety for the proposed facility; (vi) engagement with the local communities; (vii) supply chain risk assessment of raw material sourcing.