PDL, HAL get $30m

The International Finance Corporation (IFC) is investing $30 million in the Pran Dairy Limited (PDL) and the Habiganj Agro Limited (HAL), the sister concerns of the PRAN Group in Bangladesh.
The IFC's financial backing is part of supporting severely impacted businesses, especially those relying on imports for raw materials, amid a dearth of US dollars in Bangladesh.
It aims to improve the resilience of the food-processing market while creating jobs, fostering gender diversity and bolstering economy, according to the IFC.
This is the first IFC USD term loan to be used as working capital in Bangladesh, which will enable PDL and HAL to sustain operations, increase exports and preserve over 30,000 jobs.
The IFC will further support PRAN Group to improve participation of women as well as their inclusion in the workplace through relevant policies and practices.
The food and beverage sector is a key pillar of the country's national economy.
The food-processing industry accounts for approximately 13 per cent of the manufacturing production value and employs 19 per cent of the industrial manufacturing workforce with a projected compound annual growth rate of 12 per cent.
However, a shortage of foreign exchange, higher energy prices and power shortages in the country have disrupted the import of raw materials while constraining local commercial banks' lending ability.
Against this backdrop, the IFC's longer-term dollar financing will help improve access to foreign exchange, supporting Bangladeshi firms to navigate the crisis.
PRAN-RFL Group director (finance) Uzma Chowdhury said, "As a net importer, regular access to US dollars is critical. But given the prevailing shortage, it has been difficult for us to access USD funds for working capital in a timely manner."
"By providing scarcely available US dollar working capital, IFC will help ensure the long-term stability of the company's operations and allow us to contribute to the country's economic stability," she added.
As part of its advisory services, the IFC will also support PRAN Group to develop the company's smallholder-sourcing supply chain and identify opportunities to decarbonise its agro-processing operations, among others.
Martin Holtmann, IFC country manager for Bangladesh, Bhutan and Nepal, said: "Reiterating our commitment to supporting clients during a crisis, IFC's financing aims to ease the current lack of access to foreign exchange while enabling private sector growth in Bangladesh."
"We are optimistic it will help improve food security while prioritising support for strategically important industries through innovative solutions," he added.
"By backing PRAN Group," according to Mr Holtmann, "IFC will also contribute to diversifying Bangladesh's export base, key to creating jobs, expanding market opportunities and enhancing economic resilience."

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