HSBC supports the sustainable finance arrangement for Viyellatex Group

HSBC Bangladesh has arranged a $65 million sustainability-linked loan for Viyellatex Group, a vertically integrated garment manufacturer and exporter in Bangladesh, to support their sustainability goals in line with global Loan Market Association principles.

The group exports ready-made garments to global apparel retailers and follows a sustainable strategy that includes initiatives such as reducing underground water consumption, optimizing utility water use, heat recovery, and pollution prevention.

The sustainable finance facility is tied to two key performance indicators: maintaining 100% sustainable and certified sourcing of raw materials, and achieving an 8.6% increase in the Group’s Higg Index by 2025.

David Hasanat, Chairman and CEO of Viyellatex Group, commented: "Viyellatex Group is deeply committed to advancing environmental, social, and economic sustainability across all aspects of our business. We recognize that true progress stems from a holistic approach, and we are focused on integrating responsible practices into our operations, products, and community initiatives. In close collaboration with our stakeholders, we continually explore innovative solutions such as product digitalization and process reengineering to reduce our environmental footprint, improve resource efficiency, and create value."

Gerard Haughey, Managing Director and Head of Wholesale Banking, stated: “HSBC is proud to support Viyellatex Group in their environmental sustainability journey, providing financial solutions that align with their commitment to reducing carbon footprints and enhancing green practices throughout their supply chain. This partnership showcases HSBC’s ability to drive sustainable business growth.”