Washington, D.C./Islamabad, November
23, 2009—IFC, a member of the World Bank Group, has signed a $50 million
financing agreement with Engro Chemicals Pakistan Ltd. to help the company
expand and create jobs in Pakistan.
IFC will provide Engro with a $35 million corporate loan and a $15 million
quasi-equity loan that will be convertible into common shares. Engro will
use the loans to expand into the dairy business and support its corporate
growth strategy of becoming a leading regional company.
“IFC has once again responded to our needs by putting together a financing
package that allows us to continue expanding our business at a time when
overseas financing for projects in Pakistan is limited,” said Engro CEO
Asad Umar. “They have been a true long-term partner and we continue
to draw on their global expertise as we position ourselves to become an
industry- leading multinational.”
Engro and IFC’s relationship spans over 18 years, with IFC previously
financing the company’s fertilizer, polymers, and energy businesses. Engro
serves more than 3 million consumers across a range of products and employs
over 4,500 people in economically depressed areas throughout Pakistan.
The company also is dedicated to the development of the communities in
which it operates, providing medical care and skills training to local
“Companies like Engro are creating the economic opportunities that people
in Pakistan need to escape poverty,” said Marcene Broadwater, Global Head
of IFC Chemicals. “Engro’s management team is demonstrating that with
proper leadership and financing, companies in Pakistan can continue to
grow and succeed despite the country’s difficult environment.”
IFC is the only international financial institution focused exclusively
on the private sector, the engine of sustainable development in emerging
markets. Along with IBRD, it is currently seeking a capital increase to
strengthen its ability to create opportunity for the poor in developing
countries—including by investing in Pakistan’s chemical sector.
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.5
billion in fiscal 2009, helping play a prominent role in addressing the
financial crisis. For more information, visit www.ifc.org.
About Engro Chemicals Pakistan Ltd.
Engro Chemical Pakistan Ltd. always has endeavored to embark upon new business
opportunities. Its main focus remains on sustainable growth, while it ventures
out on new opportunities. It has taken various growth initiatives in its
core fertilizer business, notably setting up the world’s largest single
train urea plant. In recent years, the company has diversified into food
and power businesses, with expansion projects worth $1.6 billion. It also
is actively involved in local community service around the production facility
and supply chain, in key areas including health, education, and infrastructure
improvements. For more info visit www.engro.com