IFC, VF provide loans to 3 RMG units to improve safety
Staff reporter IFC, a member of the World Bank Group, and leading apparel supplier chain company VF Corporation provided loans of US$ 10 million to three garment factories under a new program for funding fire and building safety improvements. The financing will support its suppliers to improve workplace safety conditions, said a press release received here Monday. . IFC and its partner BRAC Bank are providing the loans to VF’s contract suppliers, and the company is providing a full corporate guarantee under the financing arrangement. VF’s guarantee to back the loans makes it possible for IFC to lend at lower interest rates, it said. IFC disbursed an initial set of loan payments, totaling $1.3 million, to three factory owners: Arunima Sportswear, Olio Apparels, and Radisson Apparel. These 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 and IFC are granting loans ranging from $100,000 to $1 million to VF’s supplier factories. The lending program is part of VF’s efforts to help suppliers assess and manage performance standards for environmental and social risks.