Dhaka, Bangladesh, February 12, 2014–
IFC, a member of the World Bank Group, has invested $10.5 million in the DBL Group to help expand the group’s state-of-the-art dyeing facility while creating 850 direct jobs. IFC is also assisting in developing a corporate governance framework to strengthen the group’s board, enhance accountability and transparency.
In addition to its own investment, IFC mobilized an additional $10.5 million from FMO, the Netherlands-based development bank.
IFC’s Advisory group will conduct corporate governance assessments for seven DBL Group companies to help them implement a corporate governance improvement plan. DBL Group is an integrated knit garments manufacturer with facilities for spinning, fabric knitting, dyeing and finishing, washing, packaging, and printing.
“With Bangladesh aspiring to become a middle income country by 2020, the significance of solid corporate governance cannot be underestimated, especially in the case of family-run enterprises,” said Abdur Rahim, CEO and Vice-Chairman, DBL Group.
Promoting good governance for private sector development is one of IFC’s major priorities. IFC’s global methodology to evaluate corporate governance risks under its ‘Corporate Governance Development Framework’ has been adopted by 31 development finance institutions including FMO, DEG and ADB.
“Effective implementation of corporate governance in Bangladesh will send a strong signal to the international community that Bangladesh is an attractive business destination,” said Kyle F. Kelhofer, IFC Country Manager for Bangladesh. Good corporate governance helps companies improve board structure, enable effective board functioning, increase accountability to shareholders, and ensure transparency.
IFC’s total investment in Bangladesh for fiscal 2012-2013 was around $770 million. Since 2011, IFC has launched a corporate governance program in Bangladesh to assist companies in developing and adopting good corporate governance practices. Globally, IFC’s corporate governance improvement programs have benefitted over 1200 companies, and facilitated $3.4 billion in new financing to them over the last five years.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit
www.ifc.org
Stay Connected
