MEGHNA SUGAR REFINERY 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
Meghna Sugar Refinery Limited (“MSRL”) is a concern of Meghna Group of Industries (“Group”, “MGI”), one of the largest conglomerates in Bangladesh. The Group is a family owned conglomerate, with a 42 years track record active in sugar, wheat, edible oil, cement, drinking water, ship building and general commodity trading.
What is our funding objective?
The Group wants to expand its current sugar refining capacity and envisages the implementation of a modern sugar refining technology supported by an energy efficient power plant. This will be done through a newly established entity, Meghna Sugar Refinery Limited.
Why do we fund this investment?
Overall, the investment will contribute to the local prosperity in Bangladesh. Specifically, it contributes to increase of food output, creation of additional jobs (direct and indirect) and optimization of resource efficiency.
What is the Environmental and Social categorization rationale?
While all Performance Standards are applicable to this investment, FMO’s environmental and social due diligence indicates that the investment will have impacts which must be managed in a manner consistent with the following Performance Standards. PS 1 – Assessment and Management of Environmental and Social Risks and Impacts, PS 2 – Labor and working conditions, PS 3 – Resource Efficiency and Pollution Prevention, PS 4 – Community Health, Safety and Security. The new refinery is erected on land within the economic zone, which has been in industrial use since many years. Input for the factory is unrefined sugar. There is no direct purchase of sugar cane, and therefore there are no first tier supply chain links with plantations. Based on this PS 5 – Land Acquisition and Involuntary Resettlement and PS 6 – Biodiversity Conservation and Sustainable Management of Living Natural Resources, are regarded as not relevant. There are no Indigenous People (IP), nor impacts on Cultural Heritage. Based on this PS 7 and 8 are also not regarded as relevant. If FMO’s investment proceeds, FMO will periodically review the project’s ongoing compliance with the Performance Standards.
- Region
- Asia
- Country
- Bangladesh
- Sector
- Agribusiness, Food & Water
- Publication date
- 9/27/2018
- Effective date
- 11/26/2018
- Total FMO financing
- EUR 15.11 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+