- Pricing structure of the loan is linked to Apparel Group’s performance against key Sustainable Performance Indicators (SPIs)
Dubai, UAE: Apparel Group, a UAE-based fashion and retail conglomerate, has signed its first bilateral long-term sustainability-linked loan (SSL) with Mashreq, one of the leading financial institutions in the MENA region.
The performance-linked financing aims to propel Apparel Group's sustainability journey by establishing ambitious targets and achieving tangible outcomes. By leveraging performance-linked financing, the Group can drive its sustainability initiatives, ensuring measurable progress towards their objectives. As part of the deal, Mashreq will closely monitor Apparel Group’s progress in meeting its sustainability objectives.
Mashreq plays a critical role in enabling the adoption of Apparel Group’s sustainable practices. This involves carefully choosing SPIs that are in line with Apparel Group’s core sustainability and business strategy while addressing significant environmental, social, and governance (ESG) factors within the fashion industry. In addition, Mashreq takes on the responsibility of calibrating the Sustainability Performance Targets (SPTs) under the selected SPIs. These targets are designed to remain applicable throughout the loan term. By setting ambitious targets and offering incentives, sustainability-linked loans strive to foster positive change and inspire impactful actions within the industry.
Joel Van Dusen, Group Head of Corporate Banking & Investment, Mashreq said: “By signing this bilateral long-term sustainability-linked loan with Apparel Group, Mashreq is demonstrating its commitment towards sustainable financing as a serious and increasingly important
consideration for businesses across all industry sectors. We recognize that corporations are responsible for implementing environmental, social, and governance (ESG) sustainability practices, and we are dedicated to helping Apparel Group prioritize crucial issues such as gender equality and responsible sourcing.”
Mr. Neeraj Teckchandani, CEO of Apparel Group, said, "This inaugural sustainability-linked loan with Mashreq is a strategic move aligning with Apparel Group's vision to infuse sustainability into every facet of our operations. Beyond mere funding, the financial framework of this agreement serves as a catalyst, supporting us to achieve our sustainability goals closely linked to environmental, social, and governance (ESG) factors. We're forging a new path in the fashion and retail industry, one that links financial growth and sustainability. As we collaborate closely with Mashreq on this journey, we aim to set new standards in areas such as diversity, inclusion, and responsible sourcing. This partnership is a strategic pillar in our broader vision of spearheading sustainable practices, ultimately fostering a more sustainable future for our stakeholders and the planet.”
Joel added, “By leveraging innovative financial instruments to incentivize sustainable practices, Mashreq aligns financial incentives with impactful ESG goals. Doing so demonstrates our commitment to paving the way to a more equitable, responsible, and environmentally conscious future. Furthermore, by leading the evolution of sustainable financing, we are pushing for serious, positive change towards a sustainable future that delivers for all stakeholders.”
Mashreq is more than half century old bank, yet proudly thinks like a challenger, startup, and innovator. Mashreq pioneered key innovations and developments in banking, starting with entry-level digital-first customers, all the way to powering some of the region’s most prominent corporations and wealth accounts.
The bank’s mandate is to help customers find their way to Rise Every Day, partnering through the highs and lows to help them reach fulfillment, achieve financial goals, and unlock their vision of success.
Reassuringly present in major financial centers of the world, Mashreq’s home and global HQ remains in the Middle East, offering services whenever and wherever opportunity takes its customers.
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Public Relations, Mashreq
About Apparel Group LLC
Apparel Group is a global fashion and lifestyle retail conglomerate residing at the crossroads of the modern economy – Dubai, United Arab Emirates. Today, Apparel Group caters to thousands of eager shoppers through its 2025+ retail stores and 80+ brands on all platforms while employing over 20,000+ multicultural staff.
Apparel Group has carved its strong presence in the GCC and expanded thriving gateways to market in India, South Africa, Singapore, Indonesia, Thailand, Malaysia, Pakistan, and Egypt. Additionally, clear strategies are in place to enter emerging markets such as Hungary and Philippines.
Apparel Group has created an omni-channel experience, operating brands originating from the USA, Canada, Europe, Australia, and Asia. The brands include leading names in fashion, footwear, and lifestyles such as Tommy Hilfiger, Charles & Keith, Skechers, Aldo, Nine West, Aeropostale, Jamie’s Italian, Tim Hortons, Cold Stone Creamery, Inglot, and Rituals.
Apparel Group owes its amazing growth to the vision and guidance of its dynamic Founder and Chairwoman, Mrs. Sima Ganwani Ved, who has taken the company from strength to strength since its inception in the last two decades.