The Asian Development Bank signed a $30 million sustainability-linked loan facility agreement with Envoy Textiles Limited in Bangladesh.
This transaction with Envoy is a follow on to the textile manufacturing project with the ADB in 2022, according to a press release issued by the ADB on Thursday.
The sustainability-linked loan, the first of its kind at the ADB in the country, is a forward-looking, performance-based debt instrument with predefined key performance indicators and assessed against sustainability performance targets.
The selected sustainability performance targets reflected Envoy鈥檚 sustainability objectives, including total installed electricity generation capacity of the rooftop solar and the amount of greenhouse gas emissions reduction.
鈥楾he ready-made garment industry is a key driver of Bangladesh鈥檚 economy, accounting for over 80 per cent of the country鈥檚 total export earnings, and Envoy is the leading denim fabric manufacturer,鈥� said ADB country director for Bangladesh Hoe Yun Jeong.
He also said that the ADB was pleased to support Envoy with its first sustainability-linked loan in Bangladesh, and this partnership would advance environmental sustainability and industrial modernisation, setting a new standard for the garment sector.
鈥榃e are honored to receive continued support from ADB, whose partnership affirms our commitment to sustainable growth and innovation,鈥� said Envoy chairman Kutubuddin Ahmed.
He also said that this new sustainability-linked loan would enable them to expand their production capacity, invest in renewable energy, and further reduce their environmental footprint.
鈥楨nvoy remains dedicated to upholding the highest standards in quality, inclusivity, and sustainability,鈥� he added.
According to the press release, the proceeds of the loan would be used to fund the design and construction of a new spinning unit for Envoy to expand its annual yarn production capacity at Envoy鈥檚 manufacturing plant in Jamirdia, Bangladesh; install 3.5 MWp of rooftop solar panels at the factory; and refinance short-term local working capital loans.
The new unit is automated and more energy-efficient, with an annual yarn production capacity of 4,550 tons, primarily used for in-house production of denim fabrics.
Envoy is the country鈥檚 leading denim fabric manufacturer, with an annual production capacity of 54 million yards鈥攁pproximately 10 per cent of the country鈥檚 total denim fabric capacity.聽
Moreover, Envoy has the world鈥檚 first platinum Leadership in Energy and Environmental Design certified denim manufacturing facility, as recognised by the United States Green Building Council.
ADB, a leading multilateral development bank, supports inclusive, resilient, and sustainable growth across Asia and the Pacific.
The bank leverages financial tools and strategic partnerships to transform lives and build high-quality infrastructure by collaborating with its members and partners.
Founded in 1966, ADB is owned by 69 members, 50 of whom are from the region, according to the press release.
