Jackfruit Post Repot 

The Asian Development Bank (ADB) has signed a $30 million sustainability-linked loan agreement with Envoy Textiles Limited, marking its first such loan in Bangladesh. The move reflects ADB’s continued commitment to promoting green, performance-based industrial financing in the country.

According to a press release issued by ADB,  the proceeds of the loan will be used to construct a new, automated spinning unit at Envoy’s manufacturing plant in Jamirdia, Bangladesh, with an annual yarn production capacity of 4,550 tons. The funds will also support the installation of 3.5 MWp rooftop solar panels and the refinancing of short-term working capital loans.

This loan follows a previous textile manufacturing project between ADB and Envoy in 2022, and builds upon the existing partnership between the multilateral bank and the country's leading denim manufacturer.

Sustainability-linked loans are designed to incentivize borrowers to meet environmental, social, and governance (ESG) goals. In this case, the loan is tied to predefined key performance indicators, including the installation of renewable energy and the reduction of greenhouse gas emissions.

“The ready-made garment industry is a key driver of Bangladesh’s economy, contributing over 80% of the country’s total export earnings,” said Hoe Yun Jeong, ADB’s 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 Textiles is Bangladesh’s largest denim fabric manufacturer, with an annual production capacity of 54 million yards—roughly 10% of the country’s total denim output. It also operates the world’s first LEED Platinum-certified denim factory, recognized by the United States Green Building Council.

“We are honored to receive continued support from ADB,” said Kutubuddin Ahmed, Chairman of Envoy Textiles.

“This new sustainability-linked loan will allow us to expand our capacity, invest in renewable energy, and further reduce our environmental footprint. It reinforces our long-standing commitment to sustainable growth and innovation.”

The project aligns with ADB’s broader mission to support inclusive, resilient, and sustainable growth across Asia and the Pacific.