ADB signs €10.8 mn facility agreement with a Bangladeshi firm

The proceeds of the loan will be used to fund a second yarn spinning unit at Envoy’s manufacturing plant in Jamirdia, Bangladesh. The new automated and more energy efficient unit will have an annual yarn production capacity of 3,600 tons, mainly used for in-house production of denim fabrics. Construction and operation of the new spinning unit is expected to create 250 new jobs, ADB said in a press release.

The project will reduce electricity consumption and greenhouse gas emissions through the use of energy efficient and modern equipment. Additionally, ADB will help Envoy to develop a gender action plan that will increase career opportunities for women employees, promote gender-inclusive procurement, and promote gender inclusion in the workplace.

“The ready-made garment industry is a key driver of Bangladesh’s economy, accounting for over 80 per cent of the country’s total export earnings, and Envoy is the leading denim fabric manufacturer. Modern spinning equipment will increase yarn production capacity, reducing reliance on imported yarn and enhancing the industry’s efficiency, sustainability, and energy efficiency," said ADB vice-president for private sector operations and public–private partnerships, Ashok Lavasa. “This project marks ADB’s return to financing Bangladesh’s textile sector after 2 decades, and it will help to crowd in much-needed financing to this strategically crucial part of the economy.”

“We are delighted to receive our first-ever financing from an international lender, and it is even more meaningful that it comes from ADB as we share the same vision of quality of service, inclusivity, and sustainability,” said Envoy founder Kutubuddin Ahmed. “Partnering with an internationally reputable financial institution such as ADB is an affirmation of Envoy’s direction and an important step in our sustainable growth.”

ALCHEMPro News Desk (DP)