Star Garments Group Togo CMT Expansion

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   IFC is considering a US$15 million financing package for Star Garments Group (“SGG” or the “Company”), to support building its greenfield Cut-Make and Trim (CMT) operations in Togo, West Africa through a newly formed subsidiary (“the Project”). The financing package is to be made up of an IFC A-loan of US$7.5m and an IDAPSW subordinated loan of US$7.5m. The location of the new facility funded under the Project: https://maps.app.goo.gl/HGtbLAdYpnK1mf8z8  which is situated within the Plateforme Industrielle d’Adétikopé (PIA) which is 22km from national capital Lomé city center in Togo.  Star Garments Group (“ SGG”) is a Sri Lanka-based major apparel manufacturer and subsidiary of the US based parent company Charles Komar & Sons (“Komar”). Komar sources garments from global suppliers, including SGG, and sells them under own brands, licensed brands as well as clients’ brands to leading retailers and brands in the US, Canada, UK and other markets. The Project is a construction of a greenfield SGG’s manufacturing facility in  Togo. It will allow it to increase its production of apparel (i.e., dresses, blouses, kids’ wear, etc.) exported to international retailers, while diversifying its manufacturing locations out of Sri Lanka, into Togo. SGG currently operates 10 factories and one innovation center in Sri Lanka. Total employment in SGG is about 8600 workers of which approximately 70% being females. The Project will create 2,000 new jobs.  The Togo factory will be constructed within a Plateform Industrial Adétikopé (PIA) Special Economic Zone (SEZ) constructed and operated by ARISE PII. The construction of the Togo factory will start during Q4, 2023 and is planned to be completed in 18 months. The project will lease 3.7 ha out of existing 328 ha of the industrial park.