Banga Building Materials Ltd (BBML), a concern of PRAN-RFL Group, has signed a $25 million deal with a German development finance institution to expand its production at the Habiganj Industrial Park.

The total project cost of BBML's expansion is $29 million, for which DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH will give a loan to finance import capital, machinery and raw materials, according to a press release.

The loan will be partially guaranteed by the European Union's EFSD+ programme under its Global Gateway Initiative.

Under the new financing, BBML will expand production of recycled products and soft PVC items such as PU leather, floor mats and PVC ceiling boards, while introducing household cleaning brushes for export to the US and European markets.

BBML currently employs around 9,500 people. The expansion at Habiganj Industrial Park is expected to create an additional 1,000 jobs.

BBML began commercial operations in 2008 at its industrial park in Shayestaganj, Habiganj.

The company's product portfolio includes PVC doors, fittings, electrical switches, and recycled plastic products.

DEG is a subsidiary of KfW Group, a German state-owned development bank, providing long-term financing and advisory services to private companies in developing and emerging countries.

DEG's support is a strong endorsement of the company's vision to produce import-substitute products while creating rural employment, said Ahsan Khan Chowdhury, chairman and CEO of PRAN-RFL Group.

Monika Beck, chief investment officer and member of the management board of DEG, said the agreement reflects the strength of the long-term partnership and underscores 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 for corporate finance of PRAN-RFL Group, and Parvez Akhter, vice president for industries and services for Asia at DEG, signed the agreement.