Engro to get $50mn from IInternational Finance Corp (IFC) for business expansion

[LahoreEstate]

KARACHI: International Finance Corporation (IFC), a member of the World Bank Group, said on Tuesday it will lend $50 million to Engro Chemicals, Pakistan’s second largest urea manufacturer, to expand its dairy business.

IFC will provide Engro with a loan of $35 million, and the remaining $15 million will be in the form of a quasi-equity loan, convertible into stock, IFC said in a statement.

‘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 Asad Umar, chief executive of Engro.

Pakistan’s macroeconomic medium term outlook is uncertain and remains fragile, the World Bank said late last month, due to the uneven implementation of reforms, fiscal instability and a volatile political and security environment.

In recent years, Engro has diversified into the food and power businesses with expansion projects worth $1.6 billion.

Last month, Engro said it planned to enter the rice processing and export business. Engro was up 0.6 per cent at 179.60 rupees by 0839 GMT in a broader marker which was up 0.5 per cent. —FREUTERS

http://www.dawn.com/wps/wcm/connect/dawn...sion-ha-07