Star Garments Group Togo CMT Expansion (IFC-48019)

Regions
  • Africa
Geographic location where the impacts of the investment may be experienced.
Countries
  • Togo
Geographic location where the impacts of the investment may be experienced.
Specific Location
Plateforme Industrielle d’Adétikopé, Lomé
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
Dec 4, 2023
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
Star Garments Togo
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • 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)
$ 15.00 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.
Loan Amount (USD)
$ 15.00 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.
Project Cost (USD)
$ 25.00 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
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Dec 2, 2023

Disclosed by Bank Oct 30, 2023

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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.

As stated by the IFC, the proposed IFC investment seeks to support Star Garments Group (Private) Limited (SGG), a Sri Lankan garments manufacturing company and wholly owned subsidiary of Charles Komar & Sons to build a greenfield Cut-Make-Trim operation in Togo through a newly formed subsidiary.
The financing package is to be made up of an IFC A-loan of US$7.5m and an IDAPSW subordinated loan of US$7.5m. The location of the new facility funded under the Project is situated within the Plateforme Industrielle d’Adétikopé which is 22km from national capital Lomé city center in Togo.
The Project will allow it to increase its production of apparel (i.e., dresses, blouses, kids’ wear, etc.) exported to international retailers, while diversifying its manufacturing locations out of Sri Lanka, into Togo. SGG currently operates 10 factories and one innovation center in Sri Lanka. Total employment in SGG is about 8600 workers of which approximately 70% being females. The Project will create 2,000 new jobs.
The construction of the Togo factory will start during Q4, 2023 and is planned to be completed in 18 months. The project will lease 3.7 ha out of existing 328 ha of the industrial park.

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

As stated by the IFC, Star Garments Group is 100% owned by Charles Komar & Sons (Komar), a US-based family-owned group.
Star Garments Group (SGG) is a Sri Lanka-based major apparel manufacturer. Komar sources garments from global suppliers, including SGG, and sells them under own brands, licensed brands as well as clients’ brands to leading retailers and brands in the US, Canada, UK and other markets.

Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - Charles Komar & Sons Parent Company Industry and Trade

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.

General IFC Inquiries - IFC Communications:

Address: 2121 Pennsylvania Avenue, NW, Washington DC 20433
Telephone: +1 202-473-3800
Fax: +1 202-974-4384

Client - Star Garments Group (Private) Limited:

Jeevith Senaratne - Director of Operations
Phone: +94 77 350 1864
Email: Jeeviths@star.lk
Address: P.O Box 1, Ring Road 2, Phase 1, IPZ, Katunayake, Sri Lanka
Website: https://www.star.lk

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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