The International Finance Corporation (IFC), a member of the World Bank Group, is considering a proposal to extend a loan of up to $35 million to Pakistan-based Engro Polymer & Chemicals Limited (EPCL), it said in a disclosure.
EPCL is a manufacturer of poly-vinyl chloride (PVC) and chlor-vinyl allied products in Pakistan. It plans to invest a total of $92.3 million in improving capacity and productivity at its chlor-vinyl chemical complex near Port Qasim in Karachi.
“Implementation of the project is expected to improve availability and affordability of high quality PVC resin and caustic flakes,” IFC said in its disclosure.
Related local industries such as construction, housing and agriculture are also likely to benefit from the project, it added.
EPCL’s facility handles the manufacturing, marketing and distribution of PVC and chlor-vinyl allied products like vinyl chloride monomer, caustic coda, hydrochloric acid and sodium hypochlorite.
The financing from IFC will help the company get access to foreign currency funding in an environment where such funding is scarce, the disclosure noted.
Pakistan Stock Exchange-listed Engro Corporation and Mitsubishi Corporation are the majority shareholders of EPCL, with a 56.19 per cent and 10.24 per cent stake respectively. The remaining shareholding is distributed among various institutions and general public.
In April 2017, IFC had said that it aims to increase its portfolio in Pakistan to over $1 billion dollars from $800 million previously. Last month, the development institution proposed an investment of up to $7.5 million in Pakistan Mortgage Refinance to meet its capital requirements.