The International Finance Corporation (IFC) of the World Bank Group recently proposed $50 million long-term financing facility to garment manufacturer Brandix Lanka Limited to sustain its operations and preserve jobs in the country. This was part of its efforts to counter the impact of the COVID-19 pandemic on the country’s badly-affected apparel sector.
In late 2020, IFC had proposed a similar financing facility to Sri Lanka’s MAS Holdings for its workforce in Sri Lanka. The status of that is currently pending.The International Finance Corporation (IFC) of the World Bank Group recently proposed $50 million long-term financing facility to garment manufacturer Brandix Lanka Limited to sustain its operations and preserve jobs in the country. This was part of its efforts to counter the impact of the COVID-19 pandemic on the country's badly-affected apparel sector.#
Brandix Apparel Limited (BAL), a fully owned subsidiary of Brandix Lanka Limited (BLL) covering Sri Lankan operations, is involved in manufacturing of activewear, casualwear, intimate wear and sleep & loungewear for global brands such as Uniqlo, Calvin Klein, Marks & Spencer, Victoria’s Secret and PVH among others.
“The proposed IFC investment is a senior long-term loan for up to US$ 50 million to Brandix to finance the medium and long-term term working capital requirements and the growth and maintenance of capital expenditure in Sri Lanka. The proceeds from the proposed investment will be used exclusively for the company’s Sri Lankan operations,” IFC disclosed. Both BAL and BLL are proposed be the co-borrowers of the loan.
IFC noted that the proposed funds would allow operating subsidiaries of BAL to retain employment, generate export revenues and continue as going concerns. At the market level, the proposed project is expected to help protect exports growth and promote resilience while limiting disruptions along the domestic and global supply chain.
The board of directors of IFC is scheduled to consider the proposed facility for Brandix on March 25.
Fibre2Fashion News Desk (DS)
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