The German development finance institution DEG on Tuesday signed a total of $34m loan agreements with two Bangladeshi companies-VIYELLATEX Group and Banga Building Materials Ltd (BBML).
DEG has decided to provide long term loans totalling $20m to BBML, a sister concern of PRAN-RFL Group and $14m to VIYELLATEX, one of the largest readymade garment exporters of Bangladesh.
The loan agreements have different purposes including creation of 6,500 direct and 700 indirect jobs, said a press release.
BBML intends to invest the money in the expansion of its current machinery also in the development of a new green field site in Habiganj.
The investment creates 2,000 direct and 700 indirect jobs.
BBML’s production of households and housing plastic items such as cooking packages, cleaning utensils, pipes and frames contributes to the improvement of low income households’ conditions particularly in remote rural areas, said a statement.
It added the company has been addressing growing issues of the disposal of non-biodegradable plastics filing up a relevant part of the plastic production cycle and reducing dependency on imported resin through their recycling initiatives.
On the other hand, the investment of VIYELLATEX group will be utilised for setting up two carbon green factories with Gold certification from Leadership in Energy and Environmental Design (LEED) by US Green Building Council (USGBC) which will create 4,500 direct jobs, continued the statement.
DEG, a subsidiary of KfW Bankengruppe and one of the largest development finance institutions in Europe, has been providing long term financing to the private sector of developing countries for more than 50 years.
VIYELLATEX Group chairman David Hasanat, vice chairman Ahasan Kabir Khan and Pran-RFL Group chief executive officer Maj Gen (Retd) Amjad Khan Chowdhury singed the agreements with DEG on behalf of their respective companies.