The International Finance Corporation (IFC), a member of the World Bank Group, is proposing an approximately $22.5 million investment in Rupshi Flour Mills Limited, a Bangladesh-based greenfield flour refining company, according to a disclosure.
The proposed IFC investment includes 14 million euros ($16.6 million) and 500 million taka ($5.9 million) with a tenor of up to eight years including a two-year grace period.
This investment is expected to be utilised for capital expenditure to be incurred for the project — plant & machinery, other equipment, building, and other construction costs.
Rupshi is a member of Bangladesh’s City Group, an established conglomerate consisting of leading food processing and packaged product companies.
“The project will contribute to improving Bangladesh’s food security by supporting improved food safety standards and provide an alternative to the major staple, at competitive prices. It will support an increased production of flour that will meet growing domestic demand and partially replace informal mills with hygienic flour of superior quality,” the international lender said in the disclosure.
In October, IFC proposed to extend up to $25 million working capital solutions (WCS) facility to Bank Asia Ltd in Bangladesh.
Earlier, it had proposed to provide two senior loans of up to $75 million to two Bangladeshi lenders — The City Bank Limited and Prime Bank Limited.