By assisting United Commercial Bank in financing a garment factory in Bangladesh, Proparco is allowing a new site to be designed, built and managed in compliance with social and environmental standards.
UCBL is one of the largest private banks in Bangladesh in terms of assets. It was set up in 1983 and by the end of 2015 had a network of 158 branches, with a headcount of over 3,800 employees. At the end of 2015, this universal bank had a consolidated balance sheet of USD 3.8bn. Its growth strategy is based on services for SMEs, as well as for textile companies, and for green financing projects.
The project involves the allocation of a senior credit line to finance the construction of a garment factory, in line with international environmental and social standards, with one of the country's leading textile players: DIRD Group. This financing is fully in line with Proparco's mandate in Bangladesh, with a green building credit line which will also improve working conditions in the textile industry.
This project will support employment in a key sector in Bangladesh by creating or maintaining 1,600 direct and indirect jobs. It will also contribute to SME development, as well as to providing access to the banking system for people living in remote areas in the country. Finally, this project will finance a garment factory in line with international social and environmental standards. This will improve the energy efficiency of facilities, environmental compliance, and safety and working conditions for employees.