IFC has committed a $100 million debt financing package to EPIC Group, comprising a $70 million sustainability-linked loan and a $30 million green loan. This financial support aims to bolster EPIC Group's growth in Bangladesh and the establishment of a new manufacturing facility in India. Moreover, EPIC Group intends to allocate the funds towards enhancing its washing and wastewater treatment infrastructure, as well as investing in technology and equipment to minimize energy and water consumption in Bangladesh.
Since its inception in 1985, EPIC Group has emerged as a significant player in the apparel industry, operating facilities in Bangladesh, Jordan, Ethiopia, Vietnam, and soon India. Known for its trusted manufacturing and supply services to global retailers, EPIC Group offers cutting-edge solutions in manufacturing, design, creativity, replenishment, and inventory management. Sustainability is ingrained as a fundamental value, guiding EPIC Group's leadership in social and environmental responsibility. With a workforce exceeding 30,000 employees, EPIC Group harnesses modern technologies, data-driven insights, and automation across its operations based in Hong Kong, Dhaka, Amman, New York, London, and Dubai to ensure the delivery of high-quality services.
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.
Beyond financing, IFC is offering EPIC Group advisory assistance to enhance its capabilities in environmental, social, and corporate governance practices and achieve its gender-related objectives. “IFC is committed to supporting a robust textile and apparel value chain across Asia”, said Riccardo Puliti, IFC’s Vice President for Asia and the Pacific. “IFC’s funding will enhance the competitiveness of the textile sector in Bangladesh and India by supporting a leading ready-made garment manufacturer to increase efficiency and improve its manufacturing processes through sustainable practices. Making the textile sector more sustainable and competitive is key to the region’s future economic resilience”.