The sponsors include Mr. Mostafa Kamal, his wife Mrs. Beauty Akhter, and their grown-up children - Ms. Tahmina Binthe Mostafa, Ms. Tanjima Binthe Mostafa, Mr. Tanveer Ahmed Mostafa and Tasnim Binthe Mostafa (collectively referred to as the “Sponsors”). The Sponsors are the ultimate beneficial owners of hundred percent of the shareholding in the Borrower.                                                  

 The total Project cost is estimated at US$372 million and is proposed to be financed with long-term debt totaling US$224 million and the balance of US$148 million will be financed through equity.

The Project involves a 9-year senior loan comprising of US$46.02 million from IFC’s own account and US$53.98 million from IFC acting in its capacity as implementing entity for the Managed Co-Lending Portfolio Program (MCPP).

The loan will have a tenor of 9 years, including a 3-year grace period on principal repayments.

  The Project will be located in Cumilla Economic Zone, Cumilla, 40 kilometers south of Dhaka, in Bangladesh.

This is a Category A project as per IFC’s Policy on Environmental and Social Sustainability (2012) due to the potentially significant, diverse, and irreversible environmental and social risks and impacts associated with this greenfield steel mill project if identified risks are not managed properly. The key E&S risks and issues include (i) the company’s management and monitoring systems to identify, assess and manage E&S risks and impacts from construction and operation of the greenfield scrap-based steel plant and its associated facility covered under the project including impacts on fishing activities; (ii) assurance of fair, safe, and healthy labor working conditions including occupational health and safety (OHS) and life & fire safety risks; (iii) monitoring and management of air emissions, wastes, wastewater and hazardous materials; (iv) monitoring and management of ambient noise levels; (v) community health and safety risks, emergency preparedness and response, risks due to road and river transport fleet operations; and (vi) stakeholder engagement activities related to E&S aspects.