The Asian Development Bank (ADB) has signed a $40 million financing package with Ananta Knitwear Limited (AKL) to finance a new knit fabric factory in Narshingdi, Bangladesh. This investment is part of a larger effort to foster sustainability in Bangladesh’s ready-made garment industry, with the financing comprising a $20 million loan from ADB and a syndicated B-loan of $20 million from the ILX Fund, an Amsterdam-based asset manager focused on Sustainable Development Goals. ADB acted as the mandated lead arranger for the package.

The new factory, expected to receive platinum certification under the Leadership in Energy and Environmental Design (LEED), will employ advanced automated energy-efficient machinery and the latest technology. Construction will generate 200 jobs, and the factory’s operation will create an additional 1,000 jobs.

“Bangladesh’s textile industry is a major contributor to the economy, impacting livelihoods and national resilience,” said Suzanne Gaboury, ADB Director General for Private Sector Operations. “ADB’s support will attract much-needed financing to this strategically crucial sector.”

Ananta Group Managing Director Sharif Zahir expressed enthusiasm for the financing, stating, “This financing from ADB and ILX symbolizes trust from our partners and underscores the global quality and development impact of our industry. Partnering with ADB affirms our shared vision of quality, inclusivity, and sustainability, marking a significant step towards our sustainable growth goals.”

The Ananta Group, a leading exporter in Bangladesh’s garment sector with over 30,000 employees across seven factories, produces items such as jeans, suits, sweaters, lingerie, activewear, and outerwear. The company has been in business for over 30 years, generating approximately $400 million in revenue.

ADB, established in 1966 and owned by 68 members, is committed to fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, with a continued focus on eradicating extreme poverty.

Source: Asian Development Bank (ADB)