Bangladesh's Envoy Textiles raises Tk 70cr

09 Apr '16

2 min read

Envoy Textiles, one of Bangladesh's leading textile companies, manufacturing high-quality denim fabrics for clients across the g1obe, has raised Tk 70 crore ($89,30,971) through commercial papers, a short-term unsecured debt instrument.

City Bank Capital arranged a commercial paper for that amount. The investors to the instrument are Pubali Bank Limited, Prime Bank Limited, and Industrial Promotion and Development Company of Bangladesh Limited (IPDC), Envoy Textiles, a concern of Envoy Group, said in a statement.

A commercial paper is issued by companies to meet their interim financing needs. It is issued at a discount from the prevailing market interest rates.

Since it is not backed by collateral, only firms with excellent credit ratings can find buyers without having to offer a substantial discount (higher cost) for the debt issue.

“As one of the leading textile companies in the sector, Envoy Textiles has greatly contributed to the growth of textiles and denim exports throughout the world,” said Kutubuddin Ahmed, chairman of Envoy Group at the subscription closing ceremony in Dhaka on Wednesday.

“Our motivation lies in delivering utmost client satisfaction, engaging in relentless innovation in our production to enhance the quality of our fabrics.”

Envoy Textiles engages cutting-edge technology in their manufacturing process, and is the pioneer in bringing rope dyeing technology to Bangladesh, the statement said.

Over the years, the company has grown to become the largest denim producing unit in Bangladesh, with an annual turnover of Tk 547 crore. (SH)

Fibre2Fashion News Desk – India

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