IFC partners with EPIC Group to boost sustainable textile manufacturing in Bangladesh and India
The International Finance Corporation (IFC) has announced a significant financial partnership with EPIC Group, a leading global apparel industry player, to support sustainable textile manufacturing and resource efficiency improvements in Bangladesh and India. The partnership involves a substantial $100 million debt financing package from IFC, which includes a $70 million sustainability-linked loan and a $30 million green loan.
This financial backing will facilitate EPIC Group’s ambitious expansion plans, including the construction of a new manufacturing facility in India and upgrading its operations in Bangladesh. Specifically, the funds are allocated to enhance a washing and wastewater treatment plant and to invest in cutting-edge technology that curtails energy and water consumption. This initiative is a pioneering move by IFC as it introduces its first green loan with sustainability-linked features in the manufacturing sector.
The collaboration is set to generate significant employment opportunities, creating over 10,500 direct jobs and 17,000 indirect jobs in both countries. Moreover, the loan agreement includes stringent corporate sustainability performance targets such as reducing greenhouse gas emission intensity by 65% per garment by 2030 (compared to 2019 levels), decreasing freshwater usage, and boosting female representation in junior and middle management roles.
Ranjan Mahtani, Executive Chairman of EPIC Group, emphasized the importance of this partnership: “Partnering with IFC is a significant step for EPIC Group in pursuit of a more sustainable and innovative textile manufacturing industry. This collaboration not only allows us to expand our operations but also reinforces our commitment to reducing our environmental footprint and enhancing resource efficiency.”
The textile sector is crucial for the economies of Bangladesh and India, with significant contributions to export earnings and employment. The investment by IFC is designed to increase the sector’s competitiveness through sustainable practices, crucial for the economic resilience of the region. Riccardo Puliti, IFC’s Vice President for Asia and the Pacific, stated, “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.”
This investment builds on IFC’s ongoing relationship with EPIC Group, previously involving advisory services on greener production and decarbonization. EPIC Group, with its vast presence across global markets and a workforce of over 30,000, remains a pivotal player in the apparel industry. It is recognized for its commitment to sustainability and innovation, aligning with modern technologies and data-driven insights to meet global retail demands.