WASHINGTON – The International Finance Corporation (IFC) has announced a US$100m debt financing package for EPIC Group to boost sustainable textile manufacturing in Bangladesh and India. This financial support comprises a US$70m sustainability-linked loan and a US$30m green loan.
The collaboration aims to reduce the environmental impact of EPIC Group’s operations. The funds will be used to expand EPIC Group’s facilities in Bangladesh, construct a new manufacturing facility in India, upgrade washing and wastewater treatment plants, and invest in technology to reduce energy and water consumption in Bangladesh.
The IFC’s funding will help create over 10,500 direct jobs and 17,000 indirect jobs across Bangladesh and India, it is claimed. The loan is linked to key sustainability performance targets including reducing greenhouse gas (GHG) emission intensity and decreasing freshwater usage intensity.
“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.”
Riccardo Puliti, IFC’s vice president for Asia and the Pacific, said: “IFC’s funding will enhance the competitiveness of the textile sector in Bangladesh and India by supporting a leading ready-made garment manufacturer to increase efficiency and improve its manufacturing processes through sustainable practices.”
The partnership aims for a 65 per cent reduction in GHG emissions per garment by 2030, compared to a 2019 benchmark.
The textile sector is a significant contributor to global carbon emissions, with Asia accounting for about 60 per cent of the sector’s output. In Bangladesh, the textile industry generates around 85 per cent of export earnings, while in India, it constitutes approximately 18 per cent of manufacturing jobs. Besides financing, IFC will provide advisory support to help EPIC Group enhance its environmental, social, and corporate governance capacity, and meet gender equality targets.
