Clifford Chance Advised IFC On Two Sustainable Finance Projects
Clifford Chance Advised IFC On Two Sustainable Finance Projects
Clifford Chance provided legal advice to the International Finance Corporation (IFC), a member of the World Bank Group, on two sustainable finance projects in the emerging markets worth a combined US$175 million. This includes a $75 million loan provided to Li & Fung, a global supply chain services provider, and a $100 million debt financing package extended to EPIC Group, a global manufacturer in the apparel industry.
The US$75 million loan to Li & Fung and its affiliate LFX’s supply-chain fintech company, Air8 will bolster their working capital and broaden their range of supply chain solutions and financing services for apparel and general merchandise suppliers, especially SMEs. The loan is expected to drive economic growth and job creation in developing economies such as Bangladesh, Cambodia, China, Indonesia, Sri Lanka, and Vietnam. IFC will also collaborate with Li & Fung to enhance environmental and social practices among its suppliers.
The US$100 million financing package for EPIC Group comprises a US$70 million sustainability-linked loan and a US$30 million green loan structured with corporate sustainability performance targets in reducing greenhouse gas emissions intensity, decreasing freshwater intensity, and increasing the representation of women in management.
The funding will aid EPIC Group in expanding its operations in Bangladesh and constructing a new manufacturing facility in India. It will also facilitate technology upgrades aimed at enhancing energy and water efficiency, resulting in an estimated creation of 10,500 direct and 17,000 indirect jobs across both countries.
Lead partner Vicky Ma said, “These loans demonstrate the potential of sustainable finance to revolutionise supply chains, mitigate environmental impact, and promote socially responsible economic development on a global scale. Our collaboration with IFC underscores our commitment to advancing sustainable growth and supporting the vital work they do in emerging markets.”
Vicky Ma led both matters with support from a core team in Hong Kong consisting of Senior Associate Anthony Chan and Associate Timothy Nip.
Singapore Partner Thomas England alongwith Associate Josephine Tang and Trainee Solicitor Myles Henry advised IFC on the Li & Fung transaction.
Partner Graham Brewer (Dubai), Senior Associate Greg Jehle (Abu Dhabi), and Trainee Solicitors Philippe Mattoo (Abu Dhabi), Jonathan Ling (Hong Kong) and Francesca Spittal (London) advised on the EPIC Group transaction.
