Bengal Building Materials Limited (BMBL), a division of Pran RFL Group, is receiving a $25 million loan from the German investment and development group DEG. At the Pran RFL Group’s headquarters in Badda, Dhaka, the fourth finance agreement between BMBL and DEG was signed on Thursday. The deal was signed by Parvez Akhtar, Vice President (Industry & Services) for Asia at DEG, and Uzma Chowdhury, Director (Corporate Finance) of Pran RFL Group.

In 2008, BMBL started producing commercially at its own industrial park in Shayestaganj, Habiganj. Since then, the business has produced a variety of well-known goods, such as PVC doors, fittings, electrical switches and outlets, fans, energy-saving bulbs, melamine, stationery, opal, and recyclable materials.

A division of the KfW Group, DEG is a German development financing organization. In order to promote sustainable economic growth, the organization offers long-term finance to private sector businesses in developing and emerging nations. DEG has been providing long-term loans, equity investments, and advice services since 1962.

Since 2013, DEG has been a reliable partner of BMBL; this fourth loan arrangement is a significant turning point in their partnership. With the additional funding, BMBL will produce more recyclables and soft PVC goods like floor mats, ceiling materials, and PU leather. Additionally, it will make investments to manufacture new goods, such as household cleaning brushes, for sale to the US and Europe.

The total project cost is estimated at $29 million, of which DEG will finance $25 million for capital equipment and raw material imports. This financing will be partially guaranteed by the EU’s EFSD+ (European Fund for Sustainable Development Plus). The EFSD+ guarantee program is a major financial facility that aims to attract €135 billion in sustainable investments in partner countries, backed by a guarantee capacity of up to €40 billion from the European Union.

Currently, about 9,500 workers are employed at BMBL, and the new investment is expected to create around 1,000 additional jobs at the Habiganj Industrial Park.

Speaking about DEG’s new financing, Ahsan Khan Chowdhury, Chairman and CEO of Pran‑RFL Group, said that DEG’s ongoing partnership and guidance have been a source of inspiration and have strengthened their vision. He added that by using local and international raw materials, they are ready to produce import‑substituting products in the country, which will create extensive employment in rural areas.

Monika Beck, Chief Investment Officer and member of DEG’s Management Board, said DEG is committed to promoting sustainable development in the private sector of developing and emerging markets, including Bangladesh. She noted that through its financing and business support services, DEG has supported BMBL’s sustainable growth for many years, and the new agreement will further strengthen their long‑term partnership and shared commitment.

Michaël Crax, Minister‑Counsellor and Head of Cooperation at the European Union delegation in Bangladesh, said this is an important milestone in EU‑Bangladesh cooperation, as this is the first time an EU guarantee has been provided for a private sector loan in Bangladesh. He explained that it reflects the EU’s Global Gateway initiative to foster innovation and create new jobs by working with private companies like Pran‑RFL.

The signing ceremony was attended by Ulrike Klepman, Head of Development Cooperation at the German Embassy; R.N. Pal, Managing Director of RFL Group; Hubert Blom, EU Program Manager for Circular Economy, Private Sector & Environment; Fahmida Ahmed, DEG Country Representative for Bangladesh and Nepal; Faiyaz Hossain, Investment Manager; and Shams Arefin, Analyst.

Pran‑RFL Group is one of Bangladesh’s most diversified business groups and a leading producer of food and household products. The group exports regularly to 148 countries and directly employs around 168,000 people, making it one of the country’s largest employers.