The Asian Development Bank (ADB) has signed a $30 million sustainability-linked loan facility with Envoy Textiles Limited (Envoy), marking ADB’s first such financing in Bangladesh. The deal follows the Bank’s earlier textile manufacturing project with Envoy in 2022.
Sustainability-linked loans are forward-looking, performance-based instruments tied to key performance indicators (KPIs) and sustainability performance targets (SPTs). For Envoy, the selected targets include expanding rooftop solar capacity and reducing greenhouse gas emissions, aligning with the company’s long-term sustainability goals.
Proceeds from the loan will finance the design and construction of a new, automated, and energy-efficient spinning unit at Envoy’s Jamirdia manufacturing plant. The unit will add 4,550 tons of annual yarn production capacity, primarily for in-house denim fabric production. The financing will also support the installation of 3.5 MWp of rooftop solar panels and refinance short-term local working capital loans.
“The ready-made garment industry is a key driver of Bangladesh’s economy, accounting for over 80% of the country’s total export earnings, and Envoy is the leading denim fabric manufacturer,” said Hoe Yun Jeong, ADB Country Director for Bangladesh. “ADB is pleased to support Envoy with its first sustainability-linked loan in Bangladesh. This partnership advances environmental sustainability and industrial modernization, setting a new standard for the garment sector.”
Envoy Chairman Kutubuddin Ahmed welcomed the agreement, saying: “We are honored to receive continued support from ADB, whose partnership affirms our commitment to sustainable growth and innovation. This new loan will enable us to expand production, invest in renewable energy, and further reduce our environmental footprint.”
Envoy is Bangladesh’s leading denim fabric manufacturer, with an annual capacity of 54 million yards, representing around 10% of the country’s total denim output. The company also operates the world’s first platinum Leadership in Energy and Environmental Design (LEED) denim manufacturing facility, certified by the US Green Building Council.
By supporting Envoy with its first sustainability-linked loan in Bangladesh, ADB is reinforcing its commitment to driving green finance, industrial modernization, and sustainable growth in one of the world’s largest garment-producing nations.
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