People
The 86,000 farmers who supply to Pran will be able to obtain higher prices for their produce than from local markets or intermediaries.
240 new contract farmers are expected to benefit from Pran’s expansion.
| Company | GuarantCo |
| Sector | Manufacturing |
| Country | Bangladesh |
| Total Project Cost | USD 50m |
| PIDG Commitment |
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| Dates of PIDG involvement |
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In Bangladesh, a Fragile State according to the World Bank definition but with one of the world’s fastest growing economies, the agriculture sector is a key contributor to employment and share of GDP.
Pran Agro, a key player in this sector, has a strategic plan to meet increasing demand for processed agricultural products — both locally and overseas — by expanding its production lines and workforce. This expansion of the business will fuel economic growth and support food security.
PIDG provided two credit guarantees to support the expansion of Pran Agro to meet increasing global demand for processed agricultural products. Proceeds of the transaction will be used to fund agri-processing infrastructure including land development, the construction of a processing facility, and new process and packaging machinery.
The 86,000 farmers who supply to Pran will be able to obtain higher prices for their produce than from local markets or intermediaries.
240 new contract farmers are expected to benefit from Pran’s expansion.
The bond was the first domestic bond in Bangladesh to be backed by a development financial institution and to be subscribed to by an institutional insurance investor. As such it is expected to enhance the corporate bond market and its attractiveness to institutional investors.
The key innovation in this bond is its seven-year tenure, unlocking a deeper pool of capital for a company that has hit single limit borrowing but still has potential to grow.
30 per cent of smallholder farmers can recover more quickly from climate shocks through Pran’s provision of finance, insurance and advice.
