Photo : Collected
To support sustainable textile manufacturing and improve the sector's resource efficiency in Bangladesh and India, IFC has announced on Wednesday, (11 June) a partnership with EPIC Group, a leading player in the global apparel industry, to help finance its green capital expenditure program and create higher-skilled jobs.
IFC is providing EPIC Group with a $100 million debt financing package in the form of a $70 million sustainability-linked loan and a $30 million green loan.
This funding will support EPIC Group's expansion in Bangladesh and the construction of a new manufacturing facility in India.
Additionally, EPIC Group will use the proceeds to upgrade its washing and wastewater treatment plant and to invest in technology and equipment that will reduce energy and water use in Bangladesh.
IFC's funding, which includes its first green loan with sustainability-linked features in the manufacturing sector, is expected to help EPIC Group create over 10,500 direct jobs and 17,000 indirect jobs in the two countries.
The loan is structured with three ambitious corporate sustainability performance targets, including reducing greenhouse gas (GHG) emission intensity, decreasing freshwater intensity, and increasing the representation of women in junior and middle management.
"Partnering with IFC is a significant step for EPIC Group in pursuit of a more sustainable and innovative textile manufacturing industry," said Ranjan Mahtani, Executive Chairman of EPIC Group.
"This collaboration not only allows us to expand our operations in Bangladesh and India but also reinforces our commitment to reducing our environmental footprint and enhancing resource efficiency. Together with IFC, we are paving the way for a more resilient textile sector."
The partnership between IFC and EPIC Group will support EPIC Group in reducing its environmental footprint significantly, targeting a 65 percent reduction in GHG emission per garment produced by 2030 compared to the 2019 benchmark.
The textile sector contributes around 6-8 percent of total carbon emissions annually, out of which Asia accounts for about 60 percent.
"IFC is committed to supporting a robust textile and apparel value chain across Asia," said Riccardo Puliti, IFC's Vice President for Asia and the Pacific.
Messenger/Sourov
