International Finance Corporation (IFC) has approved a proposal to extend a $25-million senior loan to Pakistan-based Packages Limited to help the packaging firm refine its operation and increase investment in its overseas business.
The Lahore-based company is listed on the Pakistan Stock Exchange.
Packages is looking to invest $41 million to debottleneck its flexible packaging and carton line operations, undertake certain resource efficiency measures, and further invest into one of its overseas subsidiaries, according to IFC.
In May 2019, IFC proposed to make the loan financing after it had provided fee-based resource efficiency advisory to Packages in 2016 and 2018.
“IFC financing will provide the company with access to long-term foreign currency-denominated funding, which is not available in the local market,” the World Bank Group’s private lending arm said in the latest approval.
Packages was founded in 1957 by the Wazir Ali family, who along with their associate companies hold about 54.5 per cent in the business. Local institutional investors own 10.92 per cent, while Finnish packaging firm Stora Enso holds another 6.04 per cent and other foreign investors have 6.99 per cent. The remaining 21.56 per cent shares are held by general public investors.
In recent investment proposals in the South Asian region, IFC is likely to extend a $35-million funding in the form of secured non-convertible debentures in JK Paper Limited, an Indian producer of papers and packaging boards.
IFC is considering a proposal to invest $57 million in Yoma Micro Power, which builds, owns and operates small scale power plants and solar-powered mini-grids in Myanmar. And, the World Bank Group member is considering a loan of up to $50 million to Sri Lanka’s Commercial Bank of Ceylon.