IFC invests $22.7m in Hamza Textiles
The International Finance Corporation has invested $22.7 million in Hamza Textiles, a dyeing and finishing company owned by Dulal Brothers Limited (DBL Group), with an aim to improve the global competitiveness of Bangladesh’s readymade garment (RMG) sector.
The financing will help to build a new factory with advanced and resourceefficient technologies to respond to the evolving demands of consumers and create more than 900 direct jobs.
The latest investment marks the IFC’s second engagement with DBL Group.
In 2013, the IFC provided $10.5 million to Color City Limited, another one of DBL Group’s dyeing and finishing companies.
To date, the IFC has invested in five RMG manufacturing companies in Bangladesh and has provided more than $90 million, largely in the form of debt financing.
The new investment marks the IFC’s first Covid support to the RMG sector and includes financing from the International Development Association’s Private Sector Window (IDA-PSW), set up to catalyse investment in low-income and fragile countries.
‘The new factory will allow Hamza to work with new fabrics to meet increasing buyer requirements, widen its manufacturing base and highlight the effectiveness of advanced technologies to cut production costs and deliver climate benefits,’ said DBL Group managing director MA Jabbar.
The IFC’s investment will help to expand HTL’s finishing capacity by 80 tonnes per day to reach a total capacity of 103 tonnes per day at its new factory, which will also be a Leadership in Energy and Environmental Design-certified green building.
To remain competitive, the industry needs to evolve to higher value-added products and adopt modern technologies, which are even more critical given the impact of Covid-19, said IFC regional director for South Asia Hector Gomez Ang.
‘Even prior to the pandemic, the industry was beginning to stagnate in terms of innovation and value addition. We hope this investment will serve as a demonstration model for others to move up the market and remain competitive,’ he said.