Envoy Textiles to get $11m from ADB
The company made a profit of Tk 35.5 crore in the first nine months of the current financial year of 2021-22, up from Tk 9.48 crore earned in the entire 2020-21
The Asian Development Bank (ADB) may extend a loan of $11 million to Envoy Textiles Ltd to help the Bangladeshi textile miller purchase machinery for its second spinning unit.
The board of the textile company has given its consent to secure the loan from the Manila-based lender, said Envoy Textiles in a posting on the website of the Dhaka Stock Exchange (DSE) yesterday.
Shares of Envoy Textiles closed 1.92 per cent higher at Tk 47.80 on the premier bourse.
The repayment period of the loan is seven years, including a grace period of one and a half years.
The ADB will disburse the loan on the fulfilment of the conditions of the due diligence agreement and the approval of the Bangladesh Investment Development Authority, according to the DSE website.
An export-oriented manufacturing company, Envoy Textiles started commercial operation in 2008 and became a public limited company in 2012.
It set up the first denim facility in Bangladesh to use rope-dyed technology.
Envoy has a production capacity of 4.5 million yards each month and its spinning facility is capable of producing 62 tonnes of yarn per day.
The denim manufacturing facility has secured the recognition of being the world's first LEED-certified platinum factory. The Leadership in Environmental and Energy in Design (LEED) certification is given by the United States Green Building Council.
On April 26, Envoy Textiles announced it had decided to go for signing of a know-how transfer and collaboration agreement with Jeanologia, a textile solutions company in Spain, to set up an eco-efficient lab facility on its factory premises at an initial cost of 270,000 euros for 12 months.
The purpose of the deal is to set a joint work to transform the denim industry and become a global example in terms of innovation and sustainability and develop and explore new business models for the company to adapt to the challenges of the industry.
Envoy Textiles made a profit of Tk 35.5 crore in the first nine months of the current financial year of 2021-22, up from Tk 9.48 crore earned in the entire 2020-21, the company's financial statement showed.