IFC Backs Popular Pharmaceuticals with $30.7 Million Loan in Bangladesh

IFC’s $30.7 million commitment is accompanied by $64.1 million in additional private capital mobilisation, significantly increasing the overall amount of financing connected with the transaction.

The International Finance Corporation (IFC) has committed a $30.7 million senior secured loan to Popular Pharmaceuticals PLC, giving one of Bangladesh's leading generic medicine manufacturers greater access to the foreign currency it needs to purchase critical pharmaceutical raw materials. The investment is expected to support a steadier supply of essential medicines, strengthen local pharmaceutical manufacturing and create skilled employment as Popular expands parts of its business.

The financing will mainly meet Popular's U.S. dollar working capital requirements for importing Active Pharmaceutical Ingredients (APIs), the essential components used to manufacture medicines. Bangladesh has developed a sizeable domestic pharmaceutical industry that supplies most medicines consumed within the country, yet manufacturers still import roughly 90 per cent of raw materials, including APIs, leaving companies dependent on reliable access to foreign currency and international suppliers.

Securing the Ingredients Behind Everyday Medicines

For pharmaceutical manufacturers, interruptions in API imports can quickly affect production schedules and medicine availability, making access to dollar financing an important part of keeping factories running and pharmacy shelves supplied. IFC's longer-tenor U.S. dollar facility gives Popular additional financial capacity to purchase these materials on time, supporting medicine production for Bangladesh's population of around 170 million people.

Popular ranks among Bangladesh's top ten pharmaceutical companies and has built a broad manufacturing and distribution network across the country. The company produces more than 815 pharmaceutical products, which reach approximately 155,600 pharmacies and clinics, while its operations provide employment to more than 10,000 people.

Popular Pharmaceuticals Managing Director and CEO Dr Mostafizur Rahman described the IFC partnership as an important part of the company's growth plans, particularly as it works toward becoming one of Bangladesh's leading pharmaceutical businesses by 2030. He said IFC's global healthcare experience would complement the financing by helping Popular strengthen its operations, enter new therapeutic areas and build on its position in hormones and specialized medicines.

Private Capital Adds Scale to the Investment

IFC's $30.7 million commitment is accompanied by $64.1 million in additional private capital mobilisation, significantly increasing the overall amount of financing connected with the transaction. The participation of private investors also signals confidence in Bangladesh's pharmaceutical sector at a time when access to international capital can play an important role in helping local businesses expand production and improve resilience.

Carsten Mueller, IFC's Regional Industry Director for Manufacturing, Agribusiness and Services in Asia Pacific, said reliable access to critical raw materials is essential for maintaining the production of medicines used by millions of Bangladeshis every day. He also pointed to the additional private capital mobilized alongside IFC's investment as evidence of investor confidence in the country's pharmaceutical industry.

The financing reaches beyond working capital needs because Popular is also expanding its hormone division, an area that requires specialized manufacturing capabilities and a workforce with advanced technical skills.

Expansion to Create Skilled Jobs and More Roles for Women

Popular's hormone division expansion is expected to generate around 330 high-skilled jobs, adding opportunities in advanced pharmaceutical manufacturing while strengthening the pool of specialized workers available to Bangladesh's healthcare industry. The project also includes a significant focus on women's employment, with the company expected to increase the share of women working in the division by at least 60 percent.

For Bangladesh, the investment connects several economic priorities at once: maintaining the availability of locally produced medicines, reducing the risks created by foreign currency constraints, encouraging private investment and building higher-value manufacturing skills. A stronger pharmaceutical manufacturing base can also give domestic companies more room to develop specialized products and compete in increasingly sophisticated areas of healthcare.

The partnership supports the World Bank Group's goal of reaching 1.5 billion people with quality and affordable healthcare by 2030 and is aligned with Bangladesh's National Health Compact 2025, linking private-sector pharmaceutical investment with the country's wider healthcare and development priorities.