Mashreq offers sustainability-linked loan to Classic Fashion in Jordan, strengthening ESG commitment

(MENAFN- Weber Shandwick) Dubai, UAE – November 24, 2023: Mashreq, a leading financial institution in the MENA region, has announced its collaboration with Classic Fashion Apparel Industry Limited Company, providing them with a sustainability-linked loan (SLL). This marks Mashreq’s first SLL in Jordan; and sets a new standard for sustainable financing in the country.

Joel Van Dusen, Head of the Mashreq Corporate & Investment Banking Group, commented, “We are proud to extend our sustainable financing solutions to Classic Fashion. Their proactive approach to integrating sustainability within their operations sets a benchmark not just for the apparel industry but for all other businesses in the region. This transaction stands as a testament to Mashreq’s steadfast commitment to ESG and sustainable financing in the region. By intricately linking loan terms to sustainability performance, we are championing a cause that will inspire other companies to embed ESG objectives within their operations, driving tangible and impactful progress.”

Husam Abdel Al, Head of Sustainable Finance, Investment Banking at Mashreq, added, “Our strategic collaboration with Classic Fashion goes beyond mere financing. By jointly establishing clear sustainability targets, we are ensuring that our shared commitment to ESG principles translates into measurable and impactful outcomes. Through this loan, we aim to catalyse a broader shift towards sustainable practices, setting the precedence for industry-wide change.”.

Sanal Kumar KS, Chairman & Managing Director, Classic Fashion, said: “We view this SLL from Mashreq as more than just a financial agreement. It is a partnership for a brighter future. Given the pressing issue of water scarcity in Jordan, and need for clean energy, the environmental outcomes of this collaboration are profound. But beyond that, this loan symbolizes our commitment to the broader community and economy of Jordan. We are not only addressing environmental challenges but also investing in our most valuable asset – our people. Through dedicated training programs, we aim to uplift and develop thousands of our employees, ensuring that the benefits of this partnership ripple throughout the community and contribute to the sustainable growth of our nation.”

In a decisive move to ensure tangible and impactful progress in their sustainability journey, Classic Fashion have committed to a set of ambitious Sustainability Performance Targets (SPTs) that will be monitored annually throughout the duration of the loan until its maturity. These Key Performance Indicators (KPIs) are a reflection of the company’s robust sustainability strategy.

Specifically, they aim to significantly reduce GHG emissions by transitioning to clean energy, with a particular focus on harnessing solar power for their manufacturing operations. Recognizing water scarcity as a pressing issue in Jordan, another KPI is centered on achieving cumulative water savings through innovative water reuse and recycling practices. Furthermore, the company is dedicated to bolstering employee engagement and capacity-building. This commitment is evident in their adoption of the Personal Advancement and Career Enhancement (PACE) program, which not only aims to increase the representation of Jordanian employees but also emphasizes skills enhancement, with a primary focus on empowering women in the workforce.

Classic Fashion stands out in the apparel industry and is known for its commitment to producing premium quality products through environmentally conscious processes. Their state-of-the-art factories, impressive daily production of up to 500,000 garments, and a diverse workforce of 30,000 individuals from various countries underscore their prominence in the industry. With in-house laboratories accredited by international testing agencies, Classic Fashion ensures the highest quality standards are consistently met.

Mashreq’s commitment to sustainable financing is evident in its ambitious target to finance and facilitate $30 billion in sustainable financing by 2030.

MENAFN26112023004056002392ID1107486850