DBL Group gets $52m British loan to establish a new textile factory at SEZ in Sylhet

Desk Report: Bangladesh based one of the largest Textile and RMG manufacturer & Exporter, DBL Group received $52 million loan from British International Investment, a development finance institution of the UK, for the construction of a manufacturing facility.  

Photo:M. A. Jabbar, Managing Director of DBL Group, and M. Rehan Rashid, Country Director, South Asia, British International Investment exchange documents after signing a $52 million credit facility at a ceremony recently. M. A. Rahim, Vice Chairman; M. A. Quader, Deputy Managing Director, and other high officials of DBL Group were also present during the ceremony.

The loan facility will support DBL to establish Jinnat Textile Mills Ltd, a cotton yarn spinning mill to be set up in a LEED-certified green building, according to the press release.

Jinnat Textile is expected to create over 1,000 jobs for low-skilled workers in the ready-made garment (RMG) and textile sectors. Women will make up more than 50 per cent of the workforce.

The capital from BII will also support improved working condition and benefits, such as paid maternity benefits, nursery facilities, and “light duty” work options for pregnant women.

BII’s loan to DBL Group qualifies under the 2X Challenge as the facility will contribute to the strengthening of women’s economic participation and an improvement of the quality of employment for women.

The 2X Challenge is an initiative launched by the development finance institutions (DFIs) of the G7 to mobilise capital to support increased economic empowerment for women in emerging economies.

DBL Group is acclaimed for its substantial contribution to the sustainable development of the economy of Bangladesh, reads the press release.

It has been awarded 167 acres of land in Shreehatta Economic Zone, Moulvibazar, Sylhet, under the Bangladesh Economic Zones Authority (BEZA) to develop and set up new industries. Jinnat Textile will be located at DBL Industrial Park in Shreehatta Economic Zone, Sylhet in Bangladesh.

British High Commissioner to Bangladesh, Robert Chatterton Dickson, said: “I am pleased that British International Investment’s partnership with DBL Group will increase job creation and business growth, whilst also setting new industry standards for improved working conditions for women and encouraging companies to be greener.”

MA Jabbar, managing director of DBL Group, said at the signing ceremony, “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.”

M Rehan Rashid, country director, South Asia, British International Investment, 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 around inclusion and sustainability and BII will remain committed to investing in Bangladesh and its core sectors.”