Staff Correspondent
IFC announced recently a partnership with EPIC Group, a leading player in the global apparel industry, to
help finance its green capital expenditure program and create higher-skilled jobs, according to a press
release.
IFC is providing EPIC Group with a $100 million debt financing package in the form of a $70 million
sustainability-linked loan and a $30 million green loan. This funding will support EPIC Group's expansion
in Bangladesh and the construction of a new manufacturing facility in India. Additionally, EPIC Group will
use the proceeds to upgrade its washing and wastewater treatment plant and to invest in technology
and equipment that will reduce energy and water use in Bangladesh.
IFC's funding, which includes its first green loan with sustainability-linked features in the manufacturing
sector, is expected to help EPIC Group create over 10,500 direct jobs and 17,000 indirect jobs in the two
countries. The loan is structured with three ambitious corporate sustainability performance targets,
including reducing greenhouse gas (GHG) emission intensity, decreasing freshwater intensity, and
increasing the representation of women in junior and middle management.
"Partnering with IFC is a significant step for EPIC Group in pursuit of a more sustainable and innovative
textile manufacturing industry," said Ranjan Mahtani, Executive Chairman of EPIC Group. "This
collaboration not only allows us to expand our operations in Bangladesh and India but also reinforces
our commitment to reducing our environmental footprint and enhancing resource efficiency. Together
with IFC, we are paving the way for a more resilient textile sector."
The partnership between IFC and EPIC Group will support EPIC Group in reducing its environmental
footprint significantly, targeting a 65 percent reduction in GHG emission per garment produced by 2030
compared to the 2019 benchmark. The textile sector contributes around 6-8 percent of total carbon
emissions annually, out of which Asia accounts for about 60 percent. At the same time, the sector is a
critical source of growth in Bangladesh, generating around 85 percent of its export earnings, and is the
second-largest employment generator in India, accounting for approximately 18 percent of the
manufacturing jobs.
IFC and EPIC support textile manufacturing
