Envoy Textiles Limited has entered into a landmark agreement with the Asian Development Bank (ADB) for a US $ 30 million sustainability-linked loan, marking the first of its kind in Bangladesh by the ADB.
This financing arrangement is a performance-based facility tied to specific environmental goals, including increasing rooftop solar power generation and cutting greenhouse gas emissions. The initiative builds upon ADB’s prior collaboration with Envoy in 2022 on a textile project.
Funds from the loan will be directed toward constructing a new, automated spinning unit at Envoy’s manufacturing facility in Jamirdia, enhancing its denim production with an additional 4,550 tons of yarn annually. The agreement also includes the installation of 3.5 megawatts of rooftop solar panels and the refinancing of short-term domestic working capital loans.
ADB’s Country Director for Bangladesh, Hoe Yun Jeong, emphasized the strategic importance of this development: “The ready-made garment industry is the backbone of Bangladesh’s economy, contributing more than 80% of export earnings. As a leading denim producer, Envoy is setting new benchmarks in sustainability and industrial innovation.”
Envoy Textiles currently manufactures approximately 54 million yards of denim each year,accounting for nearly 10% of Bangladesh’s total denim capacity. The company is also home to the world’s first platinum LEED-certified denim facility, a recognition by the U.S. Green Building Council for excellence in environmental design.
Chairman of Envoy Textiles, Kutubuddin Ahmed, welcomed the ADB’s support, stating, “This financing will allow us to grow responsibly by expanding production capacity, investing in clean energy, and further reducing our environmental impact. We are committed to maintaining leadership in quality, sustainability, and inclusivity.”
This agreement sets a new precedent for Bangladesh’s garment sector, aligning economic growth with environmental responsibility.
