Pran Group draws expansion plan as $15m IFC loan confirmed

FE ReportbrCountry's leading agro-processing company, Pran Group, is planning to expand its plants and enhance capacity as the International Finance Corporation (IFC) has confirmed a loan worth US$ 15 million (1.5 crore) to the group.br'We'll go for a massive expansion and enhance our capacity, which will help us keep pace with the growing demand in the local and international markets,' a senior official with the Pran AMCL told the FE Tuesday.brHe also said the group applied to the Board of Investment (BoI) last week seeking permission for its plants after getting the confirmation letter relating to the loan sanction.br'We'll raise our capacity, mainly in producing juice from agro-products and confectionary items, which is growing at a rate of 15 per cent annually,' he added.brEarlier, the IFC, a private sector lending arm of the World Bank, decided to sanction the loan in its meeting held on June 22 in Washington. The IFC later approved it in its meeting held on July 31.brPran will utilise the loan to implement its $51.2 million project planned for the period of 2009-2011. brPran sources said the three-year project will broadly cover six categories of products.brThese are beverage, culinary products, confectionery items, dairy products, snacks and premium rice.brPRAN AMCL is the first Bangladeshi agro-based company, which is going to get the loan.brThe loan might be disbursed at an interest rate between 3.25 per cent and 3.75 per cent.brIFC, created in 1956 to foster private sector investment in developing nations, will provide the loan in three equal instalments in one year and a half for a period of seven years. brPran AMCL, a listed company, was established in 1993. Its food products are popular in Bangladesh. It also exports agro-based products to more than 70 countries.brFor the financial year to June 2007, the company reported combined sales worth $66.8 million.br