IFC mulls extending loan of up to $35m to Pakistan’s Engro Polymer

IFC/World Bank HQ. Photo: IFC

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.

Also Read:

IFC to invest $20m in Abraaj Group’s $200m Pakistan fund

IFC proposes $7.5m investment for 15% stake in Pakistan Mortgage Refinance

 

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.