VF guarantees loans to help apparel manufacturer - sportstextiles: Lea SportsTextiles

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VF guarantees loans to help apparel manufacturers in Bangladesh improve safety

08/12/2014
Apparel and footwear group VF Corporation has worked with Washington DC-based International Finance Corporation (IFC), a member of the World Bank Group, to provide loans to three Bangladeshi garment factories under a new programme for funding fire and building safety improvements.

Through the arrangement, VF is providing a full corporate guarantee for up to $10 million that the IFC and its partner BRAC Bank are lending to three VF contract manufacturing partners in Bangladesh. VF’s guarantee makes it possible for IFC to lend to the companies in the Asian country at low interest rates.

“Providing these loans to help supplier factories fund the necessary improvements is another positive step forward in our efforts to ensure the safety of the people making our products in Bangladesh,” said Tom Glaser, VF’s president of supply chain.

IFC has disbursed an initial set of loan payments, totalling $1.3 million, to three factory owners: Arunima Sportswear, Olio Apparels, and Radisson Apparel. Owners will use the capital to invest in safety upgrades such as the installation of fire sprinklers, fire doors and detection systems, along with other necessary repairs and safety precautions, VF said in a statement on December 8.



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