The Asian Development Bank (ADB) has signed a $30 million sustainability-linked loan facility agreement with Envoy Textiles Limited in Bangladesh, marking its first such loan in the country.
The loan will fund the construction of a new spinning unit at Envoy’s plant in Jamirdia of Bhaluka, increasing yarn production capacity, and includes the installation of 3.5 MWp of rooftop solar panels, the lender said in a statement on Thursday.
It will also refinance short-term local working capital loans, ensuring more efficient and automated production.
Envoy’s new unit will have an annual yarn production capacity of 4,550 tons, primarily for in-house denim fabric manufacturing.
“We are pleased to support Envoy with its first sustainability-linked loan, advancing environmental sustainability and industrial modernization,” said ADB Country Director for Bangladesh Hoe Yun Jeong.
Envoy Chairman Kutubuddin Ahmed expressed gratitude for ADB’s partnership, emphasizing the company’s focus on sustainable growth and innovation.
Envoy is a leading denim fabric manufacturer in Bangladesh, with an annual capacity of 54 million yards, about 10% of the country’s total denim production.
The company also operates the world’s first platinum-certified LEED denim manufacturing facility, certified by the United States Green Building Council.
Founded in 1966, ADB supports inclusive, resilient, and sustainable growth across Asia and the Pacific, harnessing innovative financial tools and strategic partnerships.
