IFC and EPIC Group Partner For Sustainable Textile Growth
IFC has announced a partnership with EPIC Group, a global leader in the apparel industry, to support sustainable textile manufacturing and enhance resource efficiency in Bangladesh and India. This collaboration includes a $100 million debt financing package comprising a $70 million sustainability-linked loan and a $30 million green loan.
The funding will enable EPIC Group to expand its operations in Bangladesh and construct a new manufacturing facility in India. Additionally, EPIC Group plans to upgrade its washing and wastewater treatment infrastructure and invest in technology to reduce energy and water consumption in Bangladesh.
IFC’s financing, which includes its first green loan with sustainability-linked features in the manufacturing sector, aims to create over 10,500 direct jobs and 17,000 indirect jobs across both countries. The loan is structured with ambitious sustainability targets, including reducing greenhouse gas emission intensity, decreasing freshwater use, and increasing gender diversity in junior and middle management roles.
Ranjan Mahtani, Executive Chairman of EPIC Group, highlighted the partnership’s significance in advancing sustainable practices within the textile industry. He emphasized EPIC Group’s commitment to environmental stewardship and operational efficiency, supported by IFC’s expertise.
The collaboration underscores IFC’s commitment to fostering a resilient textile sector in Asia. Riccardo Puliti, IFC’s Vice President for Asia and the Pacific, emphasized that enhancing sustainability and competitiveness in the textile industry is crucial for the region’s economic growth.
IFC will also provide advisory support to EPIC Group to strengthen its environmental, social, and corporate governance capabilities and meet its gender diversity goals.
This investment builds on IFC’s ongoing efforts to promote greener production practices and decarbonization in the textile sector, reinforcing EPIC Group’s position as a leader in sustainable apparel manufacturing.
