Specialist global impact investment firm Blue Earth Capital has completed a $30m direct credit investment in Q Collection, a Singapore-headquartered vertically integrated apparel manufacturer with manufacturing operations in Bangladesh.
The investment marks Blue Earth’s first sustainability-linked loan. Certain terms of the loan are tied to Q Collection’s performance in achieving predefined ESG targets linked to the Higg Index, a rating tool developed by the Sustainable Apparel Coalition which measures a company’s sustainability throughout the value chain.
Blue Earth’s investment will contribute to the development of a new manufacturing site, encompassing the upgrade to more energy efficient machines and facilities, the installation of rooftop solar systems and a rainwater harvesting initiative. According to a press release, this will enable Q Collection, which currently employs over 19,000, to further expand its operations and create more jobs.
The ready-made garment manufacturing industry accounts for over 80% of Bangladesh’s exports and employs over 4.5m individuals, mostly women from economically disadvantaged backgrounds. Bangladesh’s garment sector more broadly is the largest industrial contributor of CO2 emissions representing 15.4% of the country’s total.
In a statement, Amy Wang, Head of Private Credit at Blue Earth Capital, said: “We are excited about our partnership with Q Collection to help them expand their sustainable production capacity and create thousands of new jobs. We have aligned on a rigorous Environmental and Social Action Plan alongside the terms of the financial structure to ensure that we deliver on both impact and financial return.”
Senthil Selvan, CEO at Q Collection, added: “This investment from BlueEarth is perfectly timed, as it will be instrumental in executing our ongoing priorities, which include strategic capacity expansion, further technology integration, and several flagship sustainability projects.”
