Hamza Textiles (IFC-43454)

Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
Specific Location
Nayapara, Kashimpur, Gazipur
Whenever identified, the area within countries where the impacts of the investment may be experienced. Exact locations of projects may not be identified fully or at all in project documents. Please review updated project documents and community-led assessments.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Apr 22, 2021
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Hamza Textiles Limited
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Finance
  • Industry and Trade
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 11.35 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 44.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Primary Source

Original disclosure @ IFC website

Updated in EWS Aug 27, 2021

Disclosed by Bank Mar 17, 2021

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the bank's website, "DBL Group (“DBL” or the “Group”) started in 1991 as a vertically integrated apparel and textile manufacturing and exporting conglomerate in Bangladesh (http://www.dbl-group.com/). DBL’s apparel and textile operations cover the entire value chain of the knitted garment manufacturing process including cotton spinning, apparels and knitting, fabric dyeing and finishing, printing, embroidery, sewing and packaging. DBL’s main buyers include H&M, C&A, Puma and Asda. DBL’s facilities are also a part of “Better Work Bangladesh” and undergo regular audits. (Better Work is a joint IFC-ILO initiative to improve working conditions and respect of labour rights for workers and boost the competitiveness of apparel businesses.)

DBL is now undertaking a backward integration and energy efficiency program through expanding its finishing capacity under a group company viz. Hamza Textiles Limited (“HTL” or the “company”) from 23 t/day to 103 t/day thereby increasing the Group’s finishing capacity from ~100 t/day to ~180 t/day (the “project”)."

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Acoording to IFC, Total Project cost is estimated at ~US$44 million and is proposed to be financed with long-term debt totalling US$26.8 million (of which ~US$4 million equivalent will be provided by Mutual Trust Bank Limited) with the balance US$17.1 through equity, in the form of cash and land.
Proposed IFC investment is an A Loan of up to US$11.35 million with a tenor of eight years including a two-year grace period and a US$11.35 million loan from the IDA PSW Blended Finance Facility (“BFF”) as described in the Blended Finance section.

Private Actors Description
A Private Actor is a non-governmental body or entity that is the borrower or client of a development project, which can include corporations, private equity and banks. This describes the private actors and their roles in relation to the project, when private actor information is disclosed or has been further researched.

The Project Sponsors are Mr. Abdul Wahed, Mr. Mohammed Abdul Jabbar, Mr. Mohammed Abdur Rahim and Mr. Mohammed Abdul Quader (together, the “Sponsors”). The shareholding structure for the Company is as follows - Mr. Abdul Wahed (16.12%), Mr. Mohammed Abdul Jabbar (25%), Mr. Mohammed Abdur Rahim (19.44%), Mr. Mohammed Abdul Quader (21.11%) and immediate family members (18.33%).

The Sponsors and immediate family members, directly or indirectly, hold 100% stake in all Group companies.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Hamza Textiles Limited Client -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Hamza Textiles Limited
Mohammad Jakaria Chowdhury
Head of Treasury
+880-2-58817735
jakaria@ho.dbl-group.com
Capita South Avenue Tower (6th Floor) House 50, Road 03, Gulshan Avenue, Dhaka 1212, Bangladesh
https://www.dbl-group.com/

ACCESS TO INFORMATION

You can submit a request for information disclosure at: https://disclosures.ifc.org/#/inquiries

If you believe that your request for information from IFC has been unreasonably denied, or that this Policy has been interpreted incorrectly, you can submit a complaint at the link above to IFC's Access to Information Policy Advisor, who reports directly to IFC's Executive Vice President.

ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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