CDC Group plc (“CDC”), the UK’s development finance institution, has today announced a US$30 million commitment in a US$45 million financing facility in partnership with Standard Chartered Bank UAE to PRAN Group’s exclusive importers.
This capital will boost the export of PRAN Group’s food and beverage products from Bangladesh to Asia and Africa. The 38-year old farm to fork group, which started with agro-processing through direct farming and trading, is now amongst the largest food & beverage manufacturers in South Asia handling over 75% of Bangladesh’s processed food & beverage exports. With development values at its core, PRAN Foods’ 60,000 strong workforce is made up of 60% women with relationships spanning c. 100,000 smallholder farmers and a network of 250,000 smaller local retailers in Bangladesh.
CDC has an existing relationship with the PRAN Group through a long-term debt commitment to its group company RFL Electronics Limited (“REL”), a producer of consumer electronics and large domestic appliances for the local market. CDC has worked closely with REL to assist them in developing and implementing an improved environmental and social management system bringing further value to the business. Listen to CDC’s work here.
CDC will work closely with PRAN Group to reflect the impact achieved while working with REL. CDC will help implement strategies to further strengthen PRAN Group’s Environmental, Social and Labour management and guide PRAN to align with Good International Industry Practice*.
Srini Nagarajan, Managing Director and Head of Asia:
“Bangladesh is a key focus for CDC, with rewarding opportunities to invest responsibly and support its economic prosperity. We recently appointed Rehan Rashid to establish CDC’s presence in country.
We are delighted to support PRAN Group in its journey to become a reputable world-class institution as a role-model for corporates in Bangladesh and look forward to deepening our existing relationship. Our debt commitment will help PRAN increase its exports to India and Africa and offer immense potential for large-scale employment generation and value-creation across agriculture, industry and small retailers in Bangladesh.
We have been responsibly investing in Bangladesh since the early eighties and have current investments of US$215 million to the country. We now have a further US$1.7 billion to invest in South Asia from 2018-2021 through our flexible investment solutions including equity, corporate debt, project finance and fund investments which will mean a higher commitment to Bangladesh as well.”
Mr. Ahsan Khan Chowdhury, CEO, PRAN Group:
“PRAN has been at the forefront in its efforts to cater to Bangladesh’s demand and now has ambitions to expand further globally. The Group’s relationship with CDC will boost our efforts to tap global markets and help in implementing sustainable E&S practices.”
Naser Ezaz Bijoy, Chief Executive Officer, Standard Chartered Bangladesh: “Standard Chartered Bank is proud to be partnering with PRAN and CDC in structuring this unique funding solution for importers of PRAN Group through our UAE office. By leveraging Standard Chartered’s network strength, this financing will enable PRAN to grow and diversify its export base in India and Africa.”
Rola Abu Manneh, Chief Executive Officer, Standard Chartered UAE also commented: “ With our rich history of six decades in the UAE, we are truly privileged to lend our expertise and resources in support of our long-term clients in the country. In many ways this deal is a live example of Standard Chartered’s strategy in action. One of our core strengths is connecting multi-national, large corporates with the world’s most promising markets.”
Clare Murray, CDC group, +44 207 036 4353 / firstname.lastname@example.org
Notes to Editors:
- CDC Group plc is the UK’s development finance institution, wholly owned by the UK Government, CDC has invested in Africa and Asia for over 70 years. By investing for impact, CDC aims to help countries in Africa and Asia to build thriving communities that provide sustainable opportunities for all citizens.
- CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine and guarantees, to meet businesses’ needs and achieve development impact. CDC has net assets of £5.8bn. Find out more at www.cdcgroup.com
- Industry wide techincal guidelines created by the IFC to align buisnesses Environmental, Health and Safety practises. Read more here.
- We are a leading international banking group, with a presence in more than 60 of the world’s most dynamic markets. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, Here for good.
- Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India.
- For more stories and expert opinions please visit Insights at sc.com. Follow Standard Chartered on Twitter, LinkedIn and Facebook.