UAE-based retail conglomerate Apparel Group has signed its first bilateral long-term sustainability-linked loan with Mena’s financial institution Mashreq.
The performance-linked financing aims to enhance Apparel Group’s sustainability performance.
As part of the deal, Mashreq will closely monitor Apparel Group’s progress in meeting its sustainability objectives.
Group head of corporate banking and investment at Mashreq, Joel Van Dusen, said: “By signing this bilateral long-term sustainability-linked loan with Apparel Group, Mashreq is demonstrating its commitment towards sustainable financing as a serious and increasingly important
consideration for businesses across all industry sectors.
“We recognise that corporations are responsible for implementing environmental, social, and governance (ESG) sustainability practices, and we are dedicated to helping Apparel Group prioritise crucial issues such as gender equality and responsible sourcing.”
In April, Apparel Group stepped up its sustainability goals by introducing a greenhouse gas accounting initiative.
This carbon accounting exercise is designed to enable the company to put in place the proper reduction measures and set its net-zero targets following its sustainability report.
CEO of Apparel Group, Neeraj Teckchandani, said: “This inaugural sustainability-linked loan with Mashreq is a strategic move aligning with Apparel Group’s vision to infuse sustainability into every facet of our operations.
“Beyond mere funding, the financial framework of this agreement serves as a catalyst, supporting us to achieve our sustainability goals closely linked to environmental, social and governance (ESG) factors. We are forging a new path in the fashion and retail industry, one that links financial growth and sustainability. As we collaborate closely with Mashreq on this journey, we aim to set new standards in areas such as diversity, inclusion, and responsible sourcing. This partnership is a strategic pillar in our broader vision of spearheading sustainable practices, ultimately fostering a more sustainable future for our stakeholders and the planet.”
Mashreq is the oldest privately owned bank in the UAE and one of the oldest banking institutions in the Middle East. Founded as the Bank of Oman in 1967, it now offers online banking and e-commerce.
“By leveraging innovative financial instruments to incentivise sustainable practices, Mashreq aligns financial incentives with impactful ESG goals,” added Mr Van Dusen.
“Doing so demonstrates our commitment to paving the way to a more equitable, responsible, and environmentally conscious future. Furthermore, by leading the evolution of sustainable financing, we are pushing for serious, positive change towards a sustainable future that delivers for all stakeholders.”
