IFC Loan Helps PRAN Group Expand, Contributing to Food Security in Bangladesh
Dhaka, Bangladesh, June 22, 2011 — IFC, a member of the World Bank Group, is providing a $7 million loan to PRAN Group to expand its local dairy procurement and processing capacity, helping increase the incomes of about 17,000 Bangladeshi dairy farmers and contributing to the country’s food security.
Bangladesh has one of the lowest per capita milk consumption levels in the world and imports milk powder to meet 15 percent of its dairy demand. IFC’s investment will help PRAN raise processing capacity across its product range, including ultra-heat-treated milk, pasteurized milk, and milk powder, and increase raw milk procurement from local dairy farmers.
“PRAN’s expansion will help increase the local supply of value-added dairy products, contributing to food security in Bangladesh,” said Sérgio Pimenta, IFC Director of Manufacturing, Agribusiness, and Services in Asia.
In 2008, IFC provided a $15 million loan to PRAN Group to help increase production capacity in snacks, confectionery, beverages, rice, dairy, and juice.
“PRAN values IFC’s continued support, particularly given the current liquidity constraints in Bangladesh. IFC’s loan will help PRAN achieve poverty reduction and job creation in rural Bangladesh by promoting the growth of a competitive dairy sector in the country,” said Amjad Chowdhury, Founder and Chief Executive Officer of PRAN Group.
PRAN’s latest expansion project will demonstrate that an efficient and well-managed dairy operation in Bangladesh can attract international investment and increase access to larger supply chains for rural dairy farmers.
“The private sector can play a pivotal role by efficiently linking dairy farmers to commercial supply channels and by implementing best practices in the dairy sector,” said Kyle F. Kelhofer, IFC Country Manager, Bangladesh.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in developing countries. We create opportunity for people to escape poverty and improve their lives. We do so by providing financing to help businesses employ more people and supply essential services, by mobilizing capital from others, and by delivering advisory services to ensure sustainable development. In a time of global economic uncertainty, our new investments climbed to a record $18 billion in fiscal 2010. For more information, visit www.ifc.org
PRAN is the largest food processing company in Bangladesh. The company produces a wide range of products, including juices, drinks, snacks, culinary, confectionery, dairy and premium quality rice. For more information, visit www.pranfoods.net.