IFC, Renata partner to boost Bangladesh's pharmaceutical industry

In a landmark move to strengthen access to affordable and quality medicines, improve public health, and support economic growth, the International Finance Corporation (IFC) of the World Bank Group has committed a $58 million long-term loan to Renata PLC, a leading pharmaceutical company in Bangladesh.

This financing will help address the company's critical working capital needs, offering essential liquidity support amid limited US dollar financing availability.

IFC aims to bolster the country's pharmaceutical sector and its capacity to deliver essential healthcare products, according to a press release issued yesterday (8 May).

Bangladesh's pharmaceutical industry is rapidly growing, meeting 98% of local demand and expanding its global footprint. However, reliance on imported Active Pharmaceutical Ingredients (API) can present challenges. IFC's investment will help Renata secure these materials, enhancing the industry's ability to provide uninterrupted access to critical medicines, said the release.

Syed S Kaiser Kabir, CEO and Managing Director of Renata PLC, said, "In the context of USD liquidity constraints, the ongoing risk of further devaluation of BDT vs USD and the ever-increasing cost of financing in Bangladesh, the IFC commitment to Renata will bring significant stability to our supply chain and support cost-effective manufacturing."  

The sector is a key driver of Bangladesh's economy, with growing contributions through exports and skilled employment.

Imad N Fakhoury, IFC Regional Director for South Asia, said, "IFC's partnership with Renata will drive crucial growth and create jobs in Bangladesh's pharmaceutical industry. By supporting Renata's operations, we aim to help them maintain a robust supply chain and develop and register new products in international markets to ensure the availability of essential medicines.

"The partnership will bolster the competitiveness of Bangladesh's pharmaceutical sector and solidify the country's standing in the international generics industry."

IFC is committed to supporting private sector growth in Bangladesh, particularly in sectors critical to health, employment, and exports. This partnership with Renata reflects IFC's strategic goal of driving sustainable growth and expanding Bangladesh's impact in global markets, added the release.