The International Finance Corporation (IFC), a member of the World Bank Group, has proposed a $50 million loan to Brandix Apparel Limited (BAL), a wholly-owned subsidiary of the Sri Lanka-based apparel manufacturer Brandix Lanka Limited (BLL).
The company is likely to use the proceeds to meet working capital expenses and for capex plans for BAL’s existing operations in Sri Lanka, per its disclosure.
BLL manufactures apparel across four categories: activewear, casualwear, intimate wear and sleep & loungewear.
The company has 28 manufacturing facilities across 5 countries, namely, Sri Lanka, India, Bangladesh, Cambodia and Haiti.
BAL is fully owned by BLL, which in turn is 100% owned by Phoenix Ventures Limited, in which Mohamed Haji Omar, Mohamed Aslam Omar, Mohamed Ashroff Omar and Feroz Omar hold beneficial interest.
“The project will also ensure the continued production of high value-added items and foreign exchange earnings to support the Sri Lankan economy,” the international lender said in the disclosure.
Sri Lanka is a focus country for IFC’s South Asia programme. The lender has been offering its facilities to Sri Lanka since 1998, as a financier to develop and implement private sector projects and as an advisor to strengthen small and medium enterprises (SME).
In December 2020, IFC proposed providing Sri Lanka-based MAS Holdings’ apparel unit MAS Capital a $50 million loan to help the company weather the COVID-19 pandemic.
Earlier, the international lender also considered a loan of up to $25 million to Sri Lankan mid-sized private commercial bank Nations Trust Bank.