ADB signs $30m sustainability-linked loan with Envoy Textiles
Business Desk :
The Asian Development Bank (ADB) has signed a $30 million sustainability-linked loan facility agreement with Envoy Textiles Limited, marking ADB’s first such loan in Bangladesh.
The financing will support the design and construction of a new, automated, and energy-efficient spinning unit at Envoy’s manufacturing plant in Jamirdia, Mymensingh, thereby boosting the company’s annual yarn production capacity by 4,550 tonnes.
The loan will also finance the installation of 3.5 MWp rooftop solar panels and refinance short-term local working capital loans.
Sustainability-linked loans are performance-based debt instruments tied to predefined key performance indicators, assessed against sustainability performance targets.
For Envoy, these include rooftop solar generation capacity and greenhouse gas emission reductions.
ADB Country Director for Bangladesh Hoe Yun Jeong said that the ready-made garment industry is a key driver of Bangladesh’s economy, accounting for over 80per cent of the country’s total export earnings, and
“ADB is pleased to support Envoy with its first sustainability-linked loan in Bangladesh.
This partnership advances environmental sustainability and industrial modernization, setting a new standard for the garment sector,” he said.
Envoy Chairman Kutubuddin Ahmed said that this new loan will enable us to expand our production capacity, invest in renewable energy, and further reduce our environmental footprint.
Envoy Textiles is the world’s first denim manufacturer with a platinum Leadership in Energy and Environmental Design (LEED) certification from the US Green Building Council.
The company produces 54 million yards of denim annually-about 10per cent of Bangladesh’s total capacity.