Written by The Banking Post
The Asian Development Bank (ADB) has signed a $30 million sustainability-linked loan with Envoy Textiles Limited, marking the lender’s first such financing in Bangladesh.
The fund will support the design and construction of a new automated, energy-efficient spinning unit at Envoy’s Jamirdia plant in Mymensingh, raising annual yarn production capacity by 4,550 tonnes. It will also finance the installation of 3.5 MWp rooftop solar panels and refinance short-term local working capital loans.
Sustainability-linked loans are tied to performance targets such as renewable energy generation and greenhouse gas emission cuts. For Envoy, the targets include solar capacity expansion and reduced carbon emissions.
ADB’s country director said the loan will help advance sustainability and industrial modernisation in a sector that contributes more than 80 per cent of Bangladesh’s export earnings.
Envoy Chairman Kutubuddin Ahmed welcomed the financing, noting it would expand production, support renewable energy adoption, and reduce the company’s environmental footprint.
Envoy Textiles is the world’s first denim manufacturer to earn platinum LEED certification from the US Green Building Council. The company produces 54 million yards of denim annually, accounting for about 10 per cent of Bangladesh’s total capacity.
