DBL Group Secures $52m UK Funding for Green Spinning Facility
The UK’s Development Finance Institution (DFI) and impact investor British International Investment (BII) signed off US$52m financial credit for the DBL group.
The Bangladeshi conglomerate said the loan will support DBL in expanding its business to establish Jinnat Textile Mills Ltd., a greenfield cotton yarn spinning mill in Bangladesh, which will be housed in a LEED-certified green building.
The construction of the textile mill is said to support Bangladesh’s economic growth with the creation of over 1,000 employment opportunities for lower-skilled workers in the country’s ready-made garment (RMG) and textiles sector. DBL added that women will make up more than 50% of the new workforce, and the capital from BII will further support improving working conditions and benefits such as paid maternity benefits, nursery facilities, and ‘light duty’ work options when pregnant.
BII’s financial support to DBL qualifies under the 2X Challenge as the loan will contribute toward strengthening women’s economic participation and improving the quality of employment for them. The 2X Challenge initiative was launched at the G7 Summit 2018 as a commitment to inspire development finance institutions (DFIs) and the broader private sector to mobilise capital in supporting increased economic empowerment for women in emerging economies.
Rehan Rashid, country director of south asia at BII, said: “Bangladesh and export-oriented sectors, such as garments, are a strategic priority for BII. We look to partner with strong promoter groups, such as DBL Group, with a focus on inclusion and sustainability, and BII will remain committed to investing in Bangladesh and its core sectors. This partnership will support economic opportunities through the creation of jobs and provide economic empowerment to a large number of low-income workers, particularly women, which is how we look to deliver impact in our markets.”
A Jabbar, managing director of DBL Group, said the partnership with DII will boost Bangladesh’s economy. He added: “We are pleased to be partnering with BII: this facility would beyond doubt promote the country’s economy by the creation of more than 1,000 additional jobs in the RMG and Textile sector of Bangladesh. Additionally, under the 2X Challenge, more than 50% of the workforce would consist of women, which will play a vital role in reducing socio-economic barriers to women empowerment. I thank BII for providing a platform for creating a more sustainable and inclusive economy.”
DBL Group has been awarded 167 acres of land under the Bangladesh Economic Zones Authority (BEZA) to set up new manufacturing units for its “significant contribution” to the sustainable development of the economy of Bangladesh, the conglomerate said.
Source: Just Style