Under the terms of the agreement between IFC and Epic Group, the debt financing package includes a $70 million sustainability-focused loan and a $30 million green loan – IFC’s first green loan with sustainability features in the manufacturing sector.
The financing will support Epic Group’s expansion in Bangladesh, including upgrading its laundry and wastewater treatment facilities, as well as the construction of a new manufacturing facility in India. Proceeds will also be used to invest in technology and equipment to reduce energy and water consumption in the Bangladesh operations.
The aim of the partnership is to help Epic Group create more than 10,500 direct jobs and 17,000 indirect jobs in the two countries.
“Partnering with IFC is an important step for Epic Group in our quest to create a more sustainable and innovative textile manufacturing industry,” said Ranjan Mahtani, Executive Chairman of Epic Group. “This partnership not only enables us to expand our operations in Bangladesh and India, but also reinforces our commitment to reducing our environmental footprint and improving resource efficiency. Together with IFC, we are paving the way for a more resilient textile sector.”
The sustainability loan is structured with ambitious targets to reduce greenhouse gas emissions intensity, reduce freshwater use intensity and increase female representation in junior and middle management positions.
The partnership between IFC and EPIC Group will help Epic Group reduce its environmental footprint. The goal is to reduce greenhouse gas emissions per garment produced by 65% by 2030, compared to the 2019 benchmark.
Riccardo Puliti, IFC’s Vice President for Asia and the Pacific, also commented: “IFC’s financing will boost the competitiveness of the textile sector in Bangladesh and India by supporting a leading ready-made garment manufacturer to increase efficiency and improve its production processes through sustainable practices. Making the textile sector more sustainable and competitive is essential for the region’s future economic resilience.”
The companies believe that the textile industry is responsible for 6-8% of global carbon emissions annually, with Asia contributing around 60%. At the same time, it remains a critical economic driver in Bangladesh and India. IFC’s advisory support will help EPIC Group strengthen its environmental, social and governance capabilities to achieve sustainability goals.
Mahtani, executive chairman of Epic Group, spoke to Just Style last year about goals, challenges, predictions and sustainability.
“IFC Supports Epic Group’s Green Textile Initiative in Bangladesh, India” was originally created and published by Just Style, a GlobalData brand.
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