International Finance Corporation (IFC) is investing in the Epic Group to support its sustainable textile initiatives in Bangladesh and India and promote green practices in the fashion industry
IFC has advanced its first green loan with sustainability-linked features in the manufacturing sector by bankrolling the expansion plans of the Epic Group. The debt finance package includes $70 m sustainability-linked loan and a $30m green loan
The loan will fund Epic Group's expansion in Bangladesh, including upgrading its washing and wastewater treatment plants. It will also support the construction of a new manufacturing facility in India.
The funds will also pay to equip Epic Group's operations in Bangladesh with the technology required to minimise energy and water consumption. The partnership aims to help Epic Group create over 10,500 direct jobs and 17,000 indirect jobs across the two countries.
The sustainability-linked loan is structured with ambitious targets for reducing greenhouse gas emissions intensity, decreasing freshwater use intensity, and increasing representation of women in junior and middle management roles.
The partnership between IFC and EPIC Group will support Epic Group in reducing its environmental footprint, targeting a 65 percent reduction in GHG emission per garment produced by 2030 compared to the 2019 benchmark.
The companies believe the textile industry accounts for 6-8 percent of global carbon emissions annually, with Asia contributing around 60 percent. 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 capacities to meet sustainability goals.