Envoy Textiles Secures $30M Sustainability-Linked Loan for New Spinning Facility

Core Insights - Envoy Textile Limited is advancing towards the establishment of a new spinning facility with the support of a $30 million sustainability-linked loan from the Asian Development Bank (ADB) [2][4]. Company Overview - Envoy Textile Limited is an export-oriented denim fabric manufacturer in Bangladesh, holding an annual production capacity of 54 million yards, which constitutes about 10 percent of the country's total denim fabric capacity [5]. - The company is recognized for having the world's first platinum Leadership in Energy and Environmental Design (LEED) certified denim manufacturing facility [5]. Loan Details - The $30 million loan will finance the construction of a new spinning unit at Envoy's manufacturing plant in Jamirdia, which will have an annual yarn production capacity of 4,550 tons, primarily for in-house denim fabric production [2]. - The funds will also be allocated for the installation of 3.5 MWp of rooftop solar panels and to refinance short-term local working capital loans [3]. Sustainability Initiatives - The ADB's loan is the first sustainability-linked loan in Bangladesh, designed as a performance-based debt instrument with specific sustainability performance targets [4]. - Envoy's sustainability objectives include increasing the total installed electricity generation capacity from rooftop solar and reducing greenhouse gas emissions [4]. Industry Context - The ready-made garment industry is crucial to Bangladesh's economy, contributing over 80 percent of the country's total export earnings, with Envoy being a leading player in the denim fabric sector [7]. - ADB's support for Envoy's sustainability-linked loan aims to promote environmental sustainability and modernization within the garment industry, setting a new benchmark for the sector [7].