VF Teams Up with International Finance Corporation to Provide $10 Million for Bangladesh Factory Safety Improvements
September 03 2014 - 8:00AM
Business Wire
Program offers
financing for fire and building safety improvements
VF Corporation (NYSE: VFC) today
announced a collaboration with the International Finance
Corporation (IFC), a member of the World Bank Group,
to provide up to $10 million in
financing for building upgrades and fire and safety
improvements in vendor factories in Bangladesh. These funds
are part of VF’s overall $17 million commitment to the health and
safety of Bangladeshi garment workers.
With this financial commitment, VF is providing a
corporate guarantee for IFC remediation loans
to VF suppliers. The program will enable the IFC
to award loans at a reasonable cost to qualified
suppliers who own factories in Bangladesh that produce VF
products, helping to accelerate the implementation of
needed fire and building safety improvements.
“The safety of the people making our products around the world
is an imperative,” said Eric Wiseman, chairman, president and CEO
of VF. “Our program with IFC helps to ensure that our suppliers
have access to the necessary capital to complete safety improvement
plans.”
Qualifying suppliers will have
undergone structural, electrical and fire safety
assessments under the protocol outlined by the Alliance for
Bangladesh Worker Safety, of which VF is a member. The funding
will be used to implement corrective
action plans derived from these assessments.
Individual loans granted to suppliers are expected to
range from $100,000 to $1 million and must address one of three
applicable performance standards: assessment and management of
environmental and social risks and impacts; labor and working
conditions; or, resource efficiency and pollution prevention.
“Employment in the apparel industry has reduced poverty for
millions of women in Bangladesh,” said Serge Devieux, IFC Director
for South Asia. “This financing model, which we think could work
well for other buyers and suppliers, will help Bangladesh’s
suppliers improve work conditions and strengthen the country’s
ability to attract garment manufacturers.”
With the support of IFC, this program provides an innovative
solution to facilitate indirect financing support from VF to help
improve supplier factory safety. IFC will utilize its in-house
expertise on environmental and social standards to support the
effort.
Additional information on VF’s other activities to protect the
health and safety of Bangladeshi garment factory workers,
independently and as a member of the Alliance for Bangladesh Worker
Safety, can be found at wecare.vfc.com.
About VF Corp
VF Corporation (NYSE: VFC) is a global leader in the design,
manufacture, marketing and distribution of branded lifestyle
apparel, footwear and accessories. The company’s highly diversified
portfolio of 30 powerful brands spans numerous geographies, product
categories, consumer demographics and sales channels, giving VF a
unique industry position and the ability to create sustainable,
long-term growth for customers and shareholders. The company’s
largest brands are The North Face®, Vans®,
Timberland®, Wrangler®, Lee® and Nautica®. For
more information, visit www.vfc.com.
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 about 100 countries, we use our
capital, expertise, and influence to help eliminate extreme poverty
and boost shared prosperity. In FY14, we provided more than $22
billion in financing to improve lives in developing countries and
tackle the most urgent challenges of development. For more
information, visit www.ifc.org.
VF CorporationCraig Hodges,
O: 336-424-5636; C: 404-593-6049Director, Public
RelationsCraig_hodges@vfc.comorIR Contact:Lance Allega,
336-424-6082Vice President, Investor
RelationsLance_Allega@vfc.com
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