International Finance Corporation (IFC) proposes to set up a $50 million long-term financing facility for Brandix Lanka to sustain operations and preserve jobs in the country. As per a Daily Mirror report, last year IFC had proposed a similar financing facility to Sri Lanka’s MAS Holdings for its workforce in Sri Lanka. However, the status of that proposed facility is currently pending.
IFC’s $50 million loan will help Brandix finance medium and long-term working capital requirements and the growth and maintenance of capital expenditure in Sri Lanka. The proceeds from the proposed investment will be used exclusively for the company’s Sri Lankan operations.
The proposed funds would allow operating subsidiaries of Brandix retain employment, generate export revenues and continue as going concerns. At the market level, the proposed project will help protect exports growth and promote resilience while limiting disruptions along the domestic and global supply chain.
Brandix is considered the largest apparel exporter in Sri Lanka and it also has operations in India, Bangladesh, Haiti and Cambodia. Overall, it employs a workforce of over 60,400 and around 35,000 staff is based out of Sri Lanka, consisting of 33,260 associates and staff and 1,740 executives.