IFC invests $22.7 mn in HTL to raise Bangla RMG sector competitiveness

The new factory will create more than 900 direct jobs.

The new investment marks IFC’s first COVID-19 support in 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’s managing director MA Jabbar in an IFC press release.

The expanded operation is also expected to contribute $8 million to Bangladesh's economy directly and indirectly through local supply chains by 2028, $15 million in expected economic activities generated by the additional income of employees, and boost opportunities for micro, small, and medium enterprises along the supply chain, the press release said. 

HTL provides dyeing and finishing services for fabrics that are used in making RMG by its sister companies, owned by the DBL Group, which is one of Bangladesh’s largest integrated knitted apparel manufacturers and exporters.

IFC’s investment will help 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 (LEED)-certified green building. 

To date, IFC has invested in five RMG manufacturers in Bangladesh and has provided more than $90 million, largely in the form of debt financing. The latest investment marks IFC’s second engagement with DBL Group. In 2013, IFC also provided $10.5 million to Color City Limited, another of the Group's dyeing and finishing companies.

The family-run DBL Group, comprising 28 companies, started operations in the RMG sector in 1991 and has interests in other industries including ceramic tiles manufacturing, dredging, telecommunications, and manufacturing of semiconductors. 

Fibre2Fashion News Desk (DS)