The Sponsors are Mr. Amjad Khan Chowdhury, Mrs. Sabiha Amjad, and Mr. Ahsan Khan Chowdhury, who control the six Pran Group companies engaged in the food processing sector: AMCL Ltd., PRAN Agro Ltd., PRAN Foods Ltd., Bango Agro PRAN Ltd., PRAN Beverage Ltd., and PDL. All of these companies are fully privately-owned, with the exception of AMCL, which is listed in the Dhaka Stock Exchange.

The total project cost is estimated at $15 million. The proposed IFC investment consists of an A Loan of up to $7 million.

7.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	7.0
Equity

* These investment figures are indicative

The project will support the expansion of PDL’s existing milk and juice processing facilities in Ghorashal, Bangladesh, and its milk procurement activities in Natore in northern Bangladesh.

The agriculture sector in Bangladesh accounts for 21% of its GDP, and 55% of its population is dependent on agriculture, including 20% in dairy activities. The local dairy sector is undergoing a slow transformation from unorganized to organized channels. Within the organized sector, there are a very limited number of private sector players. The Project will support the continued expansion into the dairy sector by one of the largest agribusiness companies in Bangladesh. Pran's extensive distribution reach in Bangladesh will enable it to reach to under-served populations while bringing in improved efficiencies in the sector. The proposed Project will also have a transformative impact on the supply chain for dairy products. Pran currently works with 17,000 farmers on the dairy business. As part of this Project, PRAN will set up 60 new dairy hubs over a course of ten years, which will enable it to increase its reach to 90,000 additional farmers. The hubs will support smallholder dairies by providing entire package of logistic support including, veterinary care, animal husbandry, dairy housing, feed, breed improvement and training.

IFC's additionality in the Project includes: (i) the provision of long-term financing up to seven years, which is otherwise difficult to secure in the local market. (ii) continued support to Pran in establishing and implementing policies that reflect environmental and social best practices.

This is a Category B project according IFC’s Procedure for Environmental and Social Review of Projects. Key environmental and social (E&S) issues associated with this Project include: development and implementation of corporate and facility-specific integrated management systems covering quality, environment, health and food safety; assurance of fair, safe and healthy working conditions in compliance with local regulatory requirements and relevant Performance Standards; resource efficiency of the operations (water, energy); monitoring and management of air emissions, wastewater treatment and discharge, solid and other waste disposal; food safety aspects of the operations; the impacts of operations on local ambient air quality and life, fire and safety, including emergency preparedness and response; and the supply chain related E&S issues associated with procurement and transport of milk.
Further details on the potential environmental and social impacts of the project, corresponding mitigation measures and guidance on how and where information about the project are provided in the IFC Environmental & Social Review Summary.