📋 Tender Overview
Project Name
Envoy Sustainability-Linked Loan Project
Project Number
56027-002
Borrower / Company
Envoy Textiles Limited (ETL)
Country / Economy
Bangladesh
Location
Type or Modality of Assistance
Approval Number Facility Fund Source Amount Status
Loan Ordinary capital resources USD 30.00 million Proposed
Sector / Subsector
Industry and trade / Large and medium industries
Gender
Some gender elements
Project Sponsor(s)
Description
The project includes the design, construction, maintenance, and operation of ETL's capacity expansion to increase yarn production by 4,550 tons per year. It also involves the installation of 3.5 MWp rooftop solar modules and the refinancing of short-term local working capital loans. The borrower has its factory in Jamirdia, Mymensingh which is about 71 kilometers north of Dhaka.
Objectives and Scope
Impacts. The project is aligned with the following impacts: (i) fulfillment of domestic and export demand for textiles within the country provided, (ii) export and modernization of the textile industry for creation of employment opportunities increased, and (iii) international competitiveness, and sustainable development attained.
Outcome. The project represents ADB's support to the important textile industry in Bangladesh - a kay driver for economic growth, employment and exports. The project will have the following outcome: sustainable denim fabric manufacturing operations of the borrower improved. Once implemented, the project is expected to increase borrower's yarn production, reduce wastewater hazardous sludge, reduce electricity consumption and greenhouse gas emission, and increase renewable energy usage.
Outputs. The project's output will be (i) energy efficient yarn production capacity and rooftop solar of ETL expanded with gender equality enhanced, and (ii) ETL's foreign currency liquidity need to access raw materials ensured.
Status of Development Objectives
The proposed Sustainability-Linked Loan aims to Envoy Textiles Limited support the company's transition toward more sustainable and energy-efficient operations. The loan is aligned with ADB's climate and environmental goals, focusing on reducing greenhouse gas emissions and promoting renewable energy adoption. As of the current reporting period, Envoy has initiated key activities under the loan framework, including capacity expansion and rooftop solar installation. Progress toward the sustainability performance targets (SPTs) is underway, with monitoring mechanisms in place to track energy efficiency improvements and emissions reductions. The project remains on course to contribute meaningfully to Bangladesh's broader climate resilience and sustainable industrial development objectives.
Status of Operation/Construction
No major construction works is needed for this project. ETL is currently finalizing the suppliers for the machinery and equipment. Commercial operation for the third spinning unit is expected by Q3, 2026.
Linkage
