WASHINGTON – The International Finance Corporation (IFC) of the World Bank Group has proposed a US$50m long-term financing facility to garment manufacturer Brandix Lanka Limited to “sustain its operations and preserve jobs in the country.” The money is part of efforts to counter the impact of the Covid-19 pandemic on Sri Lanka’s badly affected apparel sector.
In late 2020, IFC proposed a similar financing facility to Sri Lanka’s MAS Holdings for its workforce in Sri Lanka. The status of that is currently pending.
Brandix Apparel Limited (BAL), a fully owned subsidiary of Brandix Lanka Limited (BLL) covering Sri Lankan operations, is involved in manufacturing of activewear, casualwear, intimate wear and sleep & loungewear for global brands such as Uniqlo, Calvin Klein, Marks & Spencer, Victoria’s Secret and PVH among others.
The proposed funds would allow operating subsidiaries of Brandix retain employment, generate export revenues and continue as going concerns. At the market level, the proposed project will help protect exports growth and promote resilience while limiting disruptions along the domestic and global supply chain.
Brandix is the largest apparel exporter in Sri Lanka and it also has operations in India, Bangladesh, Haiti and Cambodia. Overall, it employs a workforce of over 60,400 and around 35,000 staff is based out of Sri Lanka, consisting of 33,260 associates and staff and 1,740 executives.
“The proposed IFC investment is a senior long-term loan for up to US$ 50 million to Brandix to finance the medium and long-term term working capital requirements and the growth and maintenance of capital expenditure in Sri Lanka. The proceeds from the proposed investment will be used exclusively for the company’s Sri Lankan operations,” IFC disclosed. Both BAL and BLL are proposed be the co-borrowers of the loan.
The board of directors of IFC is scheduled to consider the proposed facility for Brandix on March 25.
