ADB Signs First Sustainability-Linked Loan In Bangladesh With Envoy Textiles
The Asian Development Bank (ADB) has signed a $30 million sustainability-linked loan with Envoy Textiles Ltd, marking ADB’s first such loan in Bangladesh. The facility follows a 2022 partnership between ADB and Envoy, one of the country’s leading denim fabric manufacturers.
The proceeds will fund a new spinning unit at Envoy’s Jamirdia plant, boosting annual yarn production by 4,550 tonnes, mainly for in-house denim fabric. The project also includes the installation of 3.5 MWp rooftop solar panels and refinancing of local short-term working capital loans. The new unit will be automated and energy-efficient, supporting Envoy’s growth and sustainability goals.
Sustainability-linked loans are performance-based instruments tied to key environmental and social targets. For Envoy, these include expanded rooftop solar capacity and reduced greenhouse gas emissions.
“The ready-made garment industry drives over 80% of Bangladesh’s exports, and Envoy is a leader in denim,” said Hoe Yun Jeong, ADB Country Director for Bangladesh. “This first sustainability-linked loan sets a benchmark for green finance in the garment sector.”
Envoy Chairman Kutubuddin Ahmed said the financing reaffirms Envoy’s commitment to sustainable growth and innovation: “It will enable us to expand production, invest in renewable energy and further reduce our environmental footprint.”
