VF Buyer & IFC financing to Bangladeshi garments workplace safety issue

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IFC, a member of the World Bank Group and leader of the VF Corporation apparel supplier chain provided loans to three garment factories of Bangladesh Sunday under a new program to improve fire safety and financing building.

The funding will support its suppliers to improve conditions of safety, said a press release.

IFC and BRAC Bank partner to lend $ 10 million for contract suppliers of VF, and the company is offering a total guarantee of the company under the funding agreement.

VF warranty support for lending allows IFC to lend at lower interest rates.

The VF funding agreement and IFC allows plant owners meet the strict standards established by the Alliance for Workers’ Safety Bangladesh, a group of manufacturers and buyers whose job is to inspect the Bangladesh garment factories and the development of the corrective action plan to address the international clothing industry standards. VF is one of 26 members of the Alliance.

“The provision of these loans to help finance the supplier factories necessary improvement is another step in the VF efforts to ensure the safety of the people who make our products in Bangladesh,” said the president of the chain supply VF Tom Glaser.

IFC has disbursed a first series of loan payments, totaling $ 1.3 million, three owners of the factory: Arunima Sportswear, Olio clothing, Apparel and Radisson.

These homeowners use the capital to invest in security upgrades such as installation of fire sprinklers, fire doors and detection systems, and other necessary repairs and safety precautions.

“The apparel industry has provided employment and reduce poverty for millions of people in Bangladesh,” said Sergio Pimenta, IFC Director for Manufacturing, Agribusiness and services.

“This funding model, which we think might work well for other buyers and suppliers, will improve working conditions and facilitate the growth of the readymade garment industry.”

VF and IFC provide loans ranging from $ 100,000 to $ 1 millionto factories VF providers. The loan program is part of VF’s efforts to help providers assess and manage performance standards for environmental and social risks.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private companies in around 100 countries, we use our capital, expertise and influence to help eradicate extreme poverty and stimulate shared prosperity. In FY14, we provided more than $ 22 billion in funding to improve life in developing countries and to address the most pressing development challenges. For more information, visit www.ifc.org

VF Corp About

VF Corporation (NYSE: VFC) is a world leader in the design, manufacture, marketing and distribution of branded lifestyle apparel, footwear and accessories. Diverse society 30 powerful brand portfolio spans many geographies, product categories, consumer demographics and sales channels, VF giving a position of the single industry and the ability to create sustainable growth long term for customers and shareholders. Top brands of the company are The North Face®, Vans®, Timberland, Wrangler, Lee® and Nautica®. For more information, visit www.vfc.com

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