IFC gives Pran another $25m loan
International Finance Corporation (IFC) has provided just one more $25 million loan to Pran-RFL Group for this to expand one of its concern's capacity to manufacture 'affordable and quality food products'.
The six-year loan with a two-year grace period for fruit and vegetable processor Mymensingh Agro is to 'enhance the business's productiveness' and 'meet capital expenditure requirements', said Uzma Chowdhury, the group's corporate finance director.
In 2018, the IFC had provided a $35 million loan to the group for the creation of markets for farmers.
Of it, $15 million was designed for Pran Agro Business Ltd to expand its food business made up of fruit drinks, biscuits and noodles.
The remaining $20 million was for Pran Agro Ltd and Natore Agro Ltd.
The IFC Board in March approved $8 billion in fast-track financing to help companies affected by the outbreak of the novel coronavirus under its pandemic response on achieving the most vulnerable persons in developing countries.
Of it, $4 billion has been committed to date, of which near half is expected to benefit people in the poorest countries and fragile states.
The remainder is intended for assisting to support the fight against Covid-19 across other developing countries and emerging markets.
"Our goal with IFC's fast-track Covid-19 facility is to provide the needed liquidity for corporate and financial institution clients, that will provide working capital, support jobs and facilitate trade," said World Bank Group President David Malpass.
The IFC has since fully deployed $2 billion to greatly help finance institutions keep liquidity flowing to businesses that depend on trade, especially micro, small and medium-sized enterprises, a major source of employment.
"The fast-track facility was made to provide immediate liquidity to your financial institutions and real sector clients to preserve jobs and prevent short-term damage," said Stephanie von Friedeburg, interim managing director, executive vice president and chief operating officer of IFC.
"By supporting private sector clients and interventions, we are hoping in the long run to help reignite monetary growth, paving the way for a better, more resilient and sustainable future once Covid-19 recedes."
The IFC has committed yet another $2 billion under the facility, benefiting every region where it operates.
This financing will be used for a range of purposes, from bolstering healthcare providers to helping the battered tourism sector and keeping viable businesses afloat, thus saving jobs.
Another $623 million has been mobilised for these clients from private sector partners.
Additionally, an IDA Private Sector Window (PSW) provided $281 million in guarantees supporting trade-finance and working-capital loans to small and medium-size enterprises in eligible countries since March.
The PSW is a tool developed by the World Bank Group to catalyse private-sector investment in the world's poorest countries.
In August, the IFC also launched a $4-billion Global Health Platform, which is helping developing countries expand usage of medical supplies such as for example masks, ventilators, test kits and finally a Covid-19 vaccine.
