Envoy Textiles is getting a loan of 1 crore 8 lakh euros

Envoy Textiles Limited, a listed textile company, is getting a long-term loan of 1.8 million euros from the Asian Development Bank (ADB) for its second spinning unit (Blended Yarn Project). The company has already received loan approval from Bangladesh Investment Development Board (BIDA) subject to compliance with ADB conditions.

The loan was finally approved in the company`s board meeting on Sunday, December 4. Envoy Textiles will get this money after signing the formal loan agreement with ADB.
A Price Sensitive Information (PSI) was released by Envoy Textiles on Sunday after the board meeting on the ADB loan. It is said that the board has agreed to sign a long-term loan agreement of 1.8 million euros with ADB. This loan will be used to purchase machinery and other ancillary equipment for the company`s second spinning unit. The loan tenure is seven years with a grace period of one and a half years. After the grace period, the loan installments are to be repaid on half-yearly basis. Envoy Textiles` new unit is more fuel efficient and has an annual production capacity of 3,600 tonnes of denim fabrics.

When asked about this, Company Secretary of Envoy Textiles M Saiful Islam Chowdhury said, We have fulfilled all the conditions of ADB regarding the loan. Approval has already been received from the bidder. ADBO confirmed the loan. Only the approval of the board was left, which was implemented yesterday. Now only the formalities of signing the loan agreement with ADB are left. He said that ADB has agreed to give this loan in Euros instead of Dollars at our request due to the instability in the exchange rate of the dollar against the rupee.

Envoy Textile`s share price was 43 taka 90 paisa today on Monday. The company`s EPS for the financial year ended was 56 paise.