PDS Group, a global leader in the fashion infrastructure industry, continues to make remarkable strides across multiple fronts. With a strategic focus on sustainability, financial growth, and operational resilience, PDS is setting new benchmarks for the global fashion industry. Sharing some insights on PDS’s recent sustainable trade finance partnership with HSBC, a successful fundraising effort through a Qualified Institutions Placement (QIP), and the company’s updates on its operations in Bangladesh.
Sustainability-Linked Trade Finance Facility
PDS Group, in partnership with HSBC Bank Middle East Ltd, has launched a pioneering trade financing facility, integrating sustainability into its financial strategies. This facility, which spans five years, is designed to support PDS’s sustainable initiatives and includes measurable environmental targets such as reducing greenhouse gas emissions and water consumption. The agreement is a significant milestone, marking HSBC’s first trade finance facility with standardized sustainable finance performance indicators in both the UAE and Hong Kong.
Commenting on the partnership, Dr. Deepak Kumar Seth, Chairman of PDS, emphasized the importance of aligning financial strategies with environmental goals, stating, “This collaboration marks a pivotal moment in our journey towards greater accountability, transparency, and impact, setting new benchmarks for the industry.”
Qualified Institutions Placement
In a strong show of investor confidence, PDS successfully raised ₹417 crore ($51 million) through a Qualified Institutions Placement (QIP), marking a significant financial milestone. The QIP garnered a subscription rate of more than twice the issue size, underlining the market’s faith in PDS’s long-term strategic vision and business model.
Executive Vice Chairman Pallak Seth expressed gratitude for the enthusiastic response, noting that this marks the first major fundraising initiative since the company’s demerger. Group CEO Sanjay Jain highlighted the importance of this capital infusion, which will enable PDS to explore new markets, expand into new categories, and diversify its sourcing regions. This move, he added, also strengthens the company’s balance sheet and institutionalizes its capital structure with the participation of marquee long-term investors.
Operational Resilience in Bangladesh
PDS Group provided an update on its operations in Bangladesh following a brief disruption due to regional developments. The company’s facilities and partner factories have since resumed normal operations, with the full support of its customers. PDS remains optimistic about its medium-term business prospects in Bangladesh, underscoring its commitment to monitoring the situation closely and ensuring continued operational stability.
PDS Group’s recent initiatives showcase the company’s unwavering commitment to sustainable growth, financial resilience, and operational excellence. From partnering with HSBC on a groundbreaking sustainability-linked trade financing initiative to raising funds through a successful QIP and navigating regional challenges in Bangladesh, PDS continues to reinforce its leadership in the global fashion industry. As it expands its footprint and enhances its sustainability efforts, PDS is poised for continued growth and innovation across markets.
