DEG expands long-term partnership with Banga Building Materials through new USD 25 million loan

Banga, a member of the PRAN‑RFL Group, is one of Bangladesh’s most diversified manufacturers of building materials and household items. A growing share of its product portfolio is manufactured from recycled plastics. Since its founding in 2007, the company has established a nationwide distribution network and exports to approximately 20 countries across several continents.

The new financing will fund the acquisition of machinery and raw materials needed to expand production capacity. As a result, Banga can further scale the output of recycled products and soft‑PVC items while preparing new export‑oriented product lines for international markets.

Banga currently employs roughly 9,500 people. The planned expansion is expected to create around 1,000 additional jobs, reinforcing the company’s importance as a major employer in the Bangladeshi manufacturing sector. The company is also recognized as forward-thinking in circular‑economy plastics recycling. In 2025, Banga processed about 19,000 metric tons of recyclable materials and plans to more than double this amount by 2032.

With its range of locally produced, cost‑effective construction materials, Banga helps reduce Bangladesh’s dependence on imported goods and ensures affordable access to essential building inputs.

DEG plays a pivotal role in enabling the new investment and provides much‑needed long‑term financing, which remains scarce in the domestic market. DEG will continue to accompany the company through a dedicated environmental and social action plan as well as further advisory support.

The 2025 financing builds on a long‑standing partnership, which began with DEG’s initial investment in 2013 and continued with follow‑on financing in 2017 and 2023. In addition, DEG has provided several Business Support Services over the years, including an energy‑efficiency check and advisory services on corporate governance and occupational health and safety, contributing to Banga’s ongoing operational and sustainability improvements.