M&J Garments (IFC-45821)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • Bangladesh
Geographic location where the impacts of the investment may be experienced.
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
Approved
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
May 27, 2022
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
M&J Group (Garments)
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 11.70 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.
Loan Amount (USD)
$ 11.70 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)
$ 26.40 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.
Primary Source

Original disclosure @ IFC website

Updated in EWS Nov 3, 2022

Disclosed by Bank Apr 12, 2022

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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 IFC, the proposed Project involves capacity expansion of three entities of M&J Group through increasing denim manufacturing capacity at Columbia Garments Limited (“CGL”) and Columbia Apparels Limited (“CAL”) and washing capacity at Columbia Washing Plant Limited (“CWPL”) (collectively the “Borrowers” or the “Companies”). The Borrowers’ capacity will increase from 11.65 million pieces per year to 15.45 million pieces per year for both readymade garments (RMG) and washing, with this expansion. The proposed expansion will be carried out at the existing locations of the three Companies in Gazipur, Bangladesh.  

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
 
 Aggregate total Project cost is estimated at ~US$26.4 million and is proposed to be financed with long-term debt totalling US$11.7 million with the balance US$14.7 million through equity.

Proposed IFC investment is an A Loan of up to US$11.7 million with a tenor of eight years including a two-year grace period.      

Private Actor Relationship
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 Group is a family-owned business, founded by Late Mr. Mofizuddin Talukder, father of the principal Sponsors. The Companies have similar shareholding structure owned by the Sponsors – Mr. Salahuddin Ahmed (25% shareholding), Mr. Tarique Ahmed (33.3%), Mr. Munir Ahmed (33.3%), and Maheer Ahmed (8.3%). The Sponsors hold 100% stake in all the companies within the M&J Group.

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.

M&J Group is one of the top tier denim garment manufacturing and exporting groups comprising of three cut and stitching plants and two washing plants.

The Group’s initial focus was on milling flour in Bangladesh in 1965 and in 1989 the company opened their first garment factory. The Group is presently a leading manufacturer in Bangladesh comprised of eight companies whose activities include garment manufacturing, laundry and food products. Relative to garment manufacturing the Group’s clientele are leading international jeans brands and retailers in USA, EU, Asia and Australia. Core business activities in this sector include research and development, product design, cutting, sewing, washing, finishing and marketing of products made by their factories. While the company is a new investment client for IFC, they are an existing IFC advisory partner in both the IFC led Advisory Partnership for Cleaner Textile (PaCT) and Better Work Bangladesh (BWB) collaboration with the United Nation’s International Labour Organization (ILO). For more information about M&J Group facilities and production activities see https://www.mj-group.com/about-new/about.php.

 


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.

M&J Group – Columbia Garments Limited (CGL), Columbia Apparels Limited (CAL), and Colombia Washing Plant Limited (CWPL)
Mr. Sheikh Mahfuzul Hoque
Chief Financial Officer
+880 2-58814048
mahfuz_hoque@mj-group.com
17 Mohakhali, Red Crescent Concord Tower 8th, 9th, 10th, 12th & 13th Floors Bir Uttam AK Khandakar Rd, 17 Mohakhali C/A, Dhaka 1212, Bangladesh
www.mj-group.com

ACCESS TO INFORMATION

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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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