In Bangladesh, Proparco supports Q Collection, a responsible textile player committed to women's empowerment
published on 21 October 2024
Proparco is providing a bilateral $27.5 million loan to Q Collection, through financing Q Collection and its subsidiary company, SQ Celsius, Bangladesh's leading knitwear manufacturer. With the construction of a state-of-the-art sweater factory, the deployment of ‘green’ CAPEX and the strengthening of its working capital, Q Collection has strong development ambitions, as well as being highly committed to social and environmental issues.
Founded over 30 years ago by Mr Faruq, a former World Bank executive, SQ Group, operating subsidiaries of Q Collection, has become one of the leading garment manufacturers in Bangladesh. The group employs 19,000 people, nearly half of whom are women and is strongly committed towards social and environmental aspects. All factories have LEED Platinum/Gold certifications and SQ recently became a member of the UN Global Compact, the world’s largest corporate sustainability initiative. The group is now working on its Science Based Targets to set up the Net Zero transition plan. Regarding gender, many initiatives, including HERessentials and PACE, have been implemented to support woman empowerment. Such programs make the project qualified to the 2X Challenge, an important strategic objective for Proparco.
Proparco is supporting Q Collection alongside with the Austrian DFI OeEB, in expanding its production capacity.
The garment sector is strategic for Bangladesh, with most of its economy based on garment exports. The expected impact is therefore very significant, with the creation of 5,150 new jobs. Q Collection's commitment to gender equality also qualifies the project for the 2X Challenge.
The project will thus contribute to SDG 1 (‘No Poverty’) and SDG 5 (‘Gender Equality’).
According to Diane Jegam, Proparco's Regional Director for South Asia: “The textile sector is one of the biggest providers of employment in Bangladesh. Supporting a major player that is very committed to quality employment and sustainability, particularly for women and climate, is in line with Proparco's desire to support private players that create positive local impacts”.
Muhammad Ghulam Faruq, Chairman Q Collection Pte Ltd, commented "We are excited to have completed this ESG-linked loan with Proparco. Amidst our significant drive to expand manufacturing capacity and implement several ambitious environmental and social sustainability projects in Bangladesh, this transaction has been executed at the perfect time. Our partnership with Proparco will undoubtedly be instrumental in achieving both our short-term and long-term business objectives."
Her Excellency Marie Masdupuy, Ambassador of France to Bangladesh, affirmed “The partnership between Proparco and Q Collection exemplifies the strong commitment of both France and Bangladesh to promoting sustainable development towards SDG 1 and SDG 5’s achievement. This $27.5 million loan will not only strengthen Bangladesh’s critical garment sector but also create thousands of new jobs, with a focus on empowering women and fostering environmental sustainability. Through this partnership, France reaffirms its dedication towards inclusive growth and gender equality in the region.”
