PROPARCO, FMO lends $13m to PRAN
Two international financial organizations, PROPARCO and FMO have signed an agreement with PRAN Group to provide $13 million loan for developing infrastructure of its juice and beverage industries.
Société de Promotion et de Participation pour la Coopération Economique S.A. (PROPARCO), the French development finance institution, arranged the transaction for Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), the Dutch development finance institutions. PROPARCO and FMO granted loans of USD 8M and USD 5M respectively, with a tenor of 7 years.
PRAN, a leading food processor and exporter in Bangladesh, is borrowing the money for the upgrade of its allied packaging system and the set up cutting-edge technology for juice and beverage sections of its Gazipur factory under Mymensingh Agro Limited.
Ahsan Khan Chowdhury, deputy managing director of PRAN-RFL Group, Marjolein Landheer, head of agribusiness department at FMO, and Sebastien Fleury, regional representative (South Asia) at PROPARCO, signed the agreements on behalf of their respective firms.
Mme Sophie Aubert, Her Excellency Ambassador of France to Bangladesh, Ms Martine van Hoogstraten, Deputy Head of Mission, Head Economic Affairs and Development Cooperation at the Embassy of Kingdom of Netherlands, Uzma Chowdhury, director of corporate finance at PRAN-RFL Group, Deanne Arends, investment officer at FMO and Thibaut Wolff, investment officer at PROPARCO were also present during the ink deal ceremony which was held at Radisson Hotel in the capital on February 3.
Through this transaction, PROPARCO and FMO, contribute to support economic growth and, rural development, and to promote best Environmental and Social practices in Bangladesh.
Ahsan Khan said “We will purchase brand new equipments for the juice and beverage industries. Efficient machinery is essential to producing and maintaining quality products.”
“Moreover, it will help our business development and sustainability too,” he further said.
Ahsan Khan said PROPARCO and FMO’s co-operation would help to extend the maturity of its businesses. Moreover, it also helps the company to become more efficient and more competitive in domestic and foreign markets.
PROPARCO and FMO feel proud for making its first investment into Bangladesh’s Thrust Growing Sector.
Both of them said “They are very happy to support PRAN Group, a highly regarded company in Bangladesh, with footprints in rural and urban development, and which commits to implement best environmental and social practices.”
PRAN is the leading food and agribusiness company of Bangladesh recorded more than $500 million in turnover through domestic sales and exports last year.
The company set up in 1981, as a fruit and vegetable processor. PRAN is now producing more than 200 food products under 10 different categories — juices, drinks, mineral water, bakery, carbonated beverages, snacks, culinary, confectionery, biscuits and dairy.
PROPARCO is a Development Finance Institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South. Its mission is to catalyze private investment in emerging and developing countries with the aim of supporting growth, sustainable development and the achievement of the Millennium Development Goals (MDGs).
FMO is the Dutch development bank. FMO has invested in the private sector in developing countries and emerging markets for more than 45 years. Its mission is to empower entrepreneurs to build a better world. FMO invest in sectors where it believes its contribution can have the highest long-term impact: financial institutions, energy and agribusiness.