The International Finance Corporation (IFC) is set to extend a loan of up to $30.7 million to Popular Pharmaceuticals PLC, a pharmaceutical company incorporated in Bangladesh, in a cross-border financing transaction advised by TT&A and Farooq and Associates. The deal underscores the IFC’s continued commitment to strengthening the Bangladeshi pharmaceutical sector through targeted working capital support. Two law firms — one Indian, one Bangladeshi — collaborated to navigate the multi-jurisdictional legal requirements of this transaction.
Introduction
The International Finance Corporation is set to extend a loan aggregating up to $30.7 million to Popular Pharmaceuticals PLC, a company incorporated in Bangladesh. The US dollar-denominated loan will have a six-year tenor, including a 1.5-year grace period, allowing the company to navigate current liquidity constraints and maintain continuity of operations.
Popular Pharmaceuticals’ factory is located in Gazipur, about 23 km north of Dhaka, and the company ranks ninth by revenue in Bangladesh’s pharmaceutical market. The company is part of Popular Group, a family-owned healthcare conglomerate with operations across diagnostics, pharmaceuticals, hospitals, and medical education.
Deal Value
The total loan facility extended by the IFC to Popular Pharmaceuticals PLC amounts to up to $30.7 million. The loan will be used mainly to procure raw materials that are mostly imported, helping the pharma firm maintain production and ensure an uninterrupted supply of essential medicines. The proceeds will specifically finance the working capital requirements of Popular Pharma, primarily for the procurement of raw materials through imports.
Legal Teams Involved
Two firms advised the IFC on this cross-border financing transaction, covering both Indian and Bangladeshi legal jurisdictions.
TT&A (Indian Counsel for IFC)
TT&A advised IFC on this financing transaction. The transaction team comprised:
- Gautam Saha — Managing Partner
- Nikhil Bahl — Partner
- Ankita Mandal — Managing Associate
- Manasvini Vyas — Associate
Farooq and Associates (Bangladesh Law Counsel for IFC)
Farooq and Associates acted as Bangladesh law counsel for IFC on this transaction. Further details regarding the team members at Farooq and Associates were not disclosed.
Significance and Impact
This transaction is significant for several reasons. It represents a multi-jurisdictional financing structure, requiring coordinated legal advice from both an Indian firm (TT&A) and a Bangladeshi firm (Farooq and Associates) simultaneously — reflecting the complexity of cross-border IFC-backed deals in South Asia.
The transaction also reinforces TT&A‘s deepening relationship with the IFC in the Bangladesh market. TT&A had previously advised IFC on a financing transaction for the PRAN-RFL Group companies, with a team that also included Gautam Saha (Managing Partner), Nikhil Bahl (Partner), and Ankita Mandal (Managing Associate).
From a sectoral standpoint, the loan addresses a pressing need within Bangladesh’s pharmaceutical industry. Bangladesh’s pharmaceutical industry is rapidly growing, meeting 98% of local demand and expanding its global footprint. Access to US dollar-denominated working capital financing is particularly critical for companies that depend on imported raw materials, where rupee or taka depreciation can significantly erode margins.
The IFC‘s sustained engagement with Bangladesh’s pharmaceutical sector — following its earlier $58 million commitment to Renata PLC — signals a broader strategy of using development finance to shore up essential medicine supply chains in emerging markets. For Popular Pharmaceuticals, the six-year tenor, including a 1.5-year grace period, provides the company with space to navigate current liquidity constraints and maintain operational continuity.
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The IFC‘s $30.7 million loan to Popular Pharmaceuticals PLC is a well-structured, cross-border working capital facility designed to sustain pharmaceutical production in Bangladesh. TT&A, led by Gautam Saha and Nikhil Bahl, delivered Indian law counsel for the IFC, while Farooq and Associates covered the Bangladeshi legal angle. The transaction adds to a growing portfolio of IFC-backed deals in Bangladesh in which TT&A has played a central advisory role.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. It is based on the details provided and publicly available sources.
