IFC’s trade supplier financing for Hela Clothing
● Hela Clothing joins IFC’s trade supplier finance program
● Established in 2010, the IFC Global Trade Supplier Finance program is a $500 million multicurrency investment and advisory program that provides short-term finance to emerging market suppliers and small and midsize exporters.
● The program also helps banks that offer supply-chain finance to increase their presence in emerging markets.
● The GTSF program offers differentiated pricing based on the social and environmental performance of suppliers.
● The apparel sector has been identified by the EDB as one of the thrust sectors to drive the economy through exports.
● The government’s vision is to position Sri Lanka among the top 10 high quality apparel manufacturing countries in the world by 2020 and earn US $8.5 billion in revenue.
● Further, the co-operation between the government and the private sector has been a significant factor contributing to the surge in apparel exports.
IFC, a member of the World Bank Group, has partnered with leading local apparel manufacturer Hela Clothing to boost trade opportunities for Sri Lanka’s apparel industry through a trade-supplier finance facility.
Hela Clothing is the latest apparel company in Sri Lanka to join IFC’s Global Trade-Supplier Finance program.
Through this facility, IFC will provide a supplier-finance credit line to Hela Clothing against receivables from selected international buyers, providing working capital directly to the company.
“Hela Clothing prides itself in developing world-class products that establish the company as a trend-setter in the global market-space.
IFC’s trade-supplier finance program will bring greater flexibility to our operations allowing us to continuously innovate and meet the evolving needs of the apparel market.
We intend to become more competitive within the global apparel industry,” Hela Clothing Chairman Dian Gomes said.
Supplier finance is a scalable and manageable way for suppliers in emerging markets to access affordable financing against receivables from customers.
The product offers suppliers an additional source of flexible, affordable funding and may allow the buyer to negotiate longer payment terms or better prices.
“As IFC’s portfolio grows in Sri Lanka, we are looking at new ways to support companies involved in vital export sectors of the country,” said Amena Arif, IFC Country Manager for Sri Lanka and Maldives.
“Through this trade supplier finance program, Hela Clothing can access financing and grow its business while effectively managing risk.”
OSL Take:
Sri Lanka’s apparel industry is well on its path to meet the apparel export target of US $8.5 billion by 2020.
Apparel exports which bring the largest export income to the country have recorded an increase of 9.26% YoY by earning US $4.9 billion in the year of 2014.
In 2013, earnings from apparel rose by 13% YoY, recording a $4.5 billion surpassing the US $4 billion target initially set by the apparel industry.
The apparel sector has been identified by the EDB as one of the thrust sectors to drive the economy through exports.
The government’s vision is to position Sri Lanka among the top 10 high quality apparel manufacturing countries in the world by 2020 and earn US $8.5 billion in revenue.
Also, the country is well geared to position itself as a commercial hub and the apparel sector is keen on getting into the global apparel supply chain as well.
This industry, entirely privately owned, has successfully exploited the opportunities in the international market.
Further, the co-operation between the government and the private sector has been a significant factor contributing to the surge in apparel exports.
Today, Sri Lanka’s apparel industry occupies a pre-eminent position in Sri Lanka, producing high quality garments combined through an industry which is flexible and uniquely capable of servicing many leading international brands such as Victoria’s Secret, Gap, Liz Claiborne, Next Jones New York, Nike, Tommy Hilfiger to name a few.
Worn by quality conscious consumers all over the world, products belonging to these international brands are sourced and manufactured in Sri Lanka.
Sri Lanka has evolved from a mere tailoring nation to a total solution provider where fashion designs, innovations are done through sophisticated solutions.
A wide range of apparel for men, women, girls, boys, children and babies in the categories of fashion-wear, sportswear, lingerie, work-wear, rain-wear and swim-wear is manufactured and exported with the flexibility of catering to the specific seasons in many countries around the world.
More than 350 companies are engaged in apparel exports at present. Currently, more than 85% of Sri Lanka’s apparel exports are concentrated on two key markets i.e. USA and EU.
Sri Lanka is recognized all around the world today as a high quality and ethical destination in apparel manufacturing.
In the industrial cities promoted in the USD 44 billion Western Region Megapolis Masterplan (WRMM), overseas investors could set up factories exclusively for export with the help of BOI and EDB.
OSL as the leading FDI promoter to the island could educate new investors on the way forward with our local expertise.
Feel free to ask for a consultation with the biz-friendly OSL Team now to learn more.
| Article Code : | VBS/AT/10082016/Z-5 |