Banga Building Materials Ltd (BBML), a concern of the PRAN-RFL Group, has signed a $25 million financing agreement with German development finance institution DEG–Deutsche Investitions- und Entwicklungsgesellschaft mbH. The agreement will support the expansion of BBML’s manufacturing operations at the Habiganj Industrial Park.
The total cost of the expansion stands at $29 million. Under the deal, DEG will provide a loan to finance imported capital equipment, machinery, and raw materials. According to a press release, the European Union’s EFSD+ programme will partially guarantee the loan under its Global Gateway Initiative.
With the new financing, BBML will expand its production of recycled plastic products and soft PVC items. These products include PU leather, floor mats, and PVC ceiling boards. In addition, the company will introduce household cleaning brushes.
BBML plans to export these new products to the United States and European markets. As a result, the expansion will strengthen the company’s export-oriented manufacturing capacity.
BBML currently employs around 9,500 people across its operations. Meanwhile, the expansion at the Habiganj Industrial Park is expected to create approximately 1,000 new jobs.
The company began commercial operations in 2008 at its industrial park in Shayestaganj, Habiganj. Since then, BBML has built a diverse product portfolio. It manufactures PVC doors, fittings, electrical switches, and recycled plastic products.
DEG operates as a subsidiary of the German state-owned development bank KfW Group. It provides long-term financing and advisory services to private companies in developing and emerging markets.
Accordingly, Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group, said the financing reflects strong international confidence in the company’s strategy. He added that the support aligns with BBML’s goal of producing import-substitute products while creating rural employment.
Moreover, Monika Beck, chief investment officer and member of DEG’s management board, said the agreement highlights the strength of the long-term partnership. She also noted a shared commitment to sustainable growth.
The signing ceremony took place on December 11 at PRAN-RFL Group’s head office in Dhaka. Uzma Chowdhury, director of corporate finance at PRAN-RFL Group, and Parvez Akhter, vice president for industries and services for Asia at DEG, signed the agreement.
Source: The Daily Star
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