DUTCH-BANGLA PACK LIMITED
Status: Approved investmentWhy disclosure?
FMO is committed to making publicly available relevant investment information that informs stakeholders and enables them to engage directly with FMO on its investments which, in turn, enhances our investment decisions, the design and implementation of projects and policies, and strengthens development outcomes. Learn more
In case of questions
In case of questions, please contact us at disclosure@fmo.nl
Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Dutch-Bangla Pack (DBP) is a joint venture between LC Packaging International B.V. (LCP) and Bangladeshi investors active in the packaging industry. DBP starts its commercial production in 2008 and is now a leading producer of high quality Flexible Intermediate Bulk Container (FIBCs) in Bangladesh. It produces high-end FIBCs that are mainly used for food, pharmaceuticals and specialty chemicals.
What is our funding objective?
The proposed funding will be used for CAPEX in the first stage expansion of DBP. CAPEX mainly relates to the purchase of state-of-the-art machinery from German, Austrian, Turkish and Indian suppliers. Contingencies are 10% of construction cost.
Why do we fund this investment?
The proposed project is related to a Dutch interest client investing in one of the least developed countries. The project is inclusive and has significant development impact. In addition, we had 7-year excellent experience with LCP. In 2010, FMO provided a USD 1.5mln FOM loan to LCP, which was on lent to DBP as shareholder loan. LCP has shown an impeccable track record with regard to servicing its debt according to schedule as well as timely and openly reporting.
What is the Environmental and Social categorization rationale?
E&S categorization was until now B+ as the potential E&S risks a/o impacts limited, few in number and generally site specific, largely reversible and readily addressed through mitigation measures. Attention is given on efficient use of resources (water, energy and raw materials), waste management, as well as supervision over use of hazardous substances and waste, which will be further enhanced by the recycling project. Relevant IFC Performance Standards are: 1 Assessment and Management of Environmental and Social Risks and Impacts; 2 Labour and Working Conditions; 3 Resource Efficiency and Pollution Prevention; 4 Community Health, Safety and Security. 5 Land Acquisition and Involuntary Resettlement IFC Performance Standards 6 to 8 are not applicable: 6 Absence of Biodiversity Conservation areas in the area; 7 No indigniuous people are affected; 8 there is no cultural heritage at the location nor in the vicinity. Applicable are IFC Performance Standards, General IFC EHS Guidelines for A and B+ projects and the sector-specific EHS guideline: Textiles Manufacturing.
- Region
- Asia
- Country
- Bangladesh
- Sector
- Agribusiness, Food & Water
- Publication date
- 3/13/2018
- Effective date
- 7/5/2018
- Total FMO financing
- USD 3.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+