IFC provides $30.7m loan to Popular Pharma for raw material imports
The International Finance Corporation (IFC) has committed a $30.7 million senior secured loan to Popular Pharmaceuticals PLC to support the company's import of raw materials for local medicine production.
According to a press release, the long-term US dollar financing will primarily meet the pharmaceutical manufacturer's working capital needs for importing active pharmaceutical ingredients (APIs).
The initiative seeks to ensure continuity in the production of essential medicines, strengthen Bangladesh's pharmaceutical supply chain and support job creation.
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Although domestic manufacturers supply most medicines consumed in Bangladesh, the industry depends on imports for around 90% of key raw materials, particularly APIs.
IFC said its long-term dollar facility would help Popular Pharmaceuticals secure timely, uninterrupted access to foreign currency for importing critical raw materials. This would support the continued production of essential medicines for Bangladesh's population of around 170 million.
Popular Pharmaceuticals is among Bangladesh's 10 largest pharmaceutical companies. It manufactures more than 815 products and supplies them to around 155,600 pharmacies and clinics, serving millions of patients.
The company employs more than 10,000 people nationwide.
"This partnership with IFC marks an important step in our journey to become one of Bangladesh's top pharmaceutical companies by 2030," said Dr Mostafizur Rahman, managing director and CEO of Popular Pharmaceuticals, adding that the company values IFC's support.
"Beyond financing, IFC brings global healthcare expertise that will help us strengthen our operations, expand into new therapeutic areas and reinforce our leadership in hormones and specialised medicines," he added, inviting continued collaboration.
Alongside IFC's $30.7 million commitment, the financing package is expected to mobilise an additional $64.1 million in private capital, helping unlock further private investment for businesses in Bangladesh.
"Reliable access to critical raw materials is key to ensuring the uninterrupted production of medicines that millions of people in Bangladesh rely on every day," said Carsten Mueller, regional industry director for manufacturing, agribusiness and services in Asia-Pacific at IFC.
"Through our partnership with Popular, one of the country's leading pharmaceutical manufacturers, IFC is helping strengthen healthcare supply chains and create skilled jobs," he said.
"The private capital mobilised alongside IFC's investment demonstrates strong investor confidence in Bangladesh's pharmaceutical sector and will help bring more private-sector funding intoThe project will support the expansion of Popular Pharmaceuticals' hormone division, creating around 330 highly skilled positions while strengthening skills development in advanced pharmaceutical manufacturing.ment in advanced pharmaceutical manufacturing.
It will also seek to increase the share of women employed in the division by at least 60%.
The partnership aligns with the World Bank Group's goal of reaching 1.5 billion people with quality and affordable healthcare by 2030. It also directly supports Bangladesh's National Health Compact 2025.
