HSBC facilitates sustainable finance arrangement for Viyellatex Group

The Hongkong and Shanghai Banking Corporation Limited (HSBC) Bangladesh has structured a $65 million Sustainability Linked Loan for Viyellatex Group, a vertically integrated garment manufacturer and exporter based in Bangladesh, to support their sustainability priorities following global Loan Market Association principles.

The group exports readymade garments to global apparel retailers and has a sustainable strategy, covering initiatives including underground water consumption, utility water, heat recovery and pollution prevention, said a press release.

The sustainable finance facility is linked to two performance indicators: to maintain 100 percent sustainable and certified sourcing of raw materials, and another indicator is to oversee an increase to 8.6 percent in the group's Higg Index by 2025.

Commenting on the loan, David Hasanat, chairman and CEO of Viyellatex Group, said, "Viyellatex Group is deeply committed to advancing environmental, social, and economic sustainability across all aspects of our business."

"We recognise that true progress comes from a holistic approach, and we strive to integrate responsible practices into our operations, products, and community initiatives."

"In close collaboration with our stakeholders, we are constantly exploring innovative solutions, such as product digitalisation and process reengineering, to minimise our environmental footprint, enhance resource efficiency, and maximise value creation," he added.

Gerard Haughey, managing director and head of wholesale banking, said, "HSBC is proud to support Viyellatex Group in their environmental sustainability efforts, providing financial solutions aligned with their commitment to reducing carbon footprints and enhancing green practices throughout their supply chain."

"This partnership reflects HSBC's capability in fostering sustainable business growth," Haughey added.