20.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	20.0
Equity

* These investment figures are indicative

Project level impact (Economy wide effects): The Project will expand RFL’s processing capacities and allow the Group to source more inputs from local suppliers, which will support domestic value addition and associated job creation. Using IFC’s economic impact assessment framework we estimate that the Project will lead to an annual increase in GDP of US$ 239 million from 2030. This comprises 15,400 new jobs, 14,900 indirect jobs. The GDP (value added) multiplier is US$ 1.04 million per million US$ invested while the employment multiplier is 67 jobs per million US$ invested. Based on the financial model, revenue is projected to increase by 296 million US$. Market level impact (Competitiveness): Triggering new product offerings and supporting greater domestic value addition. IFC expects the project, through demonstration and replication channel, to contribute to increasing competitiveness of the consumer-packaged goods (CPG) sector and specifically in the production of dairy, bakery and confectionery products. The proposed investment will showcase the potential for domestic vertical integration downstream to take advantage of lower costs, security of supply and quality of inputs, and spearhead a replicable business model for other players with strong brand recognition, distribution strategy, lower cost of production per in-house production and scale of inputs, to increase their market shares through improvements in resource use efficiency, product diversity, quality and certification in a country where food quality and safety is a major concern. This will raise the bar in the CPG sector in Bangladesh and catalyze adoption of similar practices by other industry players.

Financial Additionality: The proposed investment is a patient senior loan of up to US$20 million with a tenor of 8 years (with 2 years grace) to implement a capex program. This kind of financing is not readily available for agribusinesses in Bangladesh. Non-financial Additionality- Standard setting: As this is a greenfield project, IFC will help the client develop a comprehensive ESAP plan and help close any gaps in the ESG standards of the Company and align Rupshi Food’s operations with IFC Standard and industry best practices., The Company will set standards which will demonstrate best practices for the sector commitment to environmental responsibility.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.