EPIC Group to get $100m loan from IFC

International Finance Corporation (IFC) will provide EPIC Group with a $100 million debt financing package to support its expansion in Bangladesh and the construction of a new manufacturing unit in India.

The package includes a $70 million sustainability-linked loan and a $30 million green loan.

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 said in a statement on Monday.

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 help the latter reduce 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.

In addition to financing, IFC is providing EPIC Group with advisory support to help the company develop its environmental, social, and corporate governance capacity, as well as to meet its gender targets.

"IFC is committed to supporting a robust textile and apparel value chain across Asia," said Riccardo Puliti, IFC vice president for Asia and the Pacific.

The investment announced on June 17 builds on IFC's existing relationship with EPIC Group. IFC previously supported EPIC Group with advisory services on greener production and decarbonisation through the Global Trade Supplier Finance programme.

EPIC Group has been a pivotal force in the apparel industry with facilities in Bangladesh, Jordan, Ethiopia, Vietnam, and soon India, IFC said in the statement.

Established in 1985, EPIC Group is a trusted manufacturer and supplier to global retailers, offering advanced manufacturing, design, creativity, replenishment, and inventory management solutions.