Germany’s DEG invests $11.9m in Bangladesh apparel manufacturer MBM Group

Photo: Rio Lecatompessy / Unsplash.com

German development finance institution Deutsche Investitions-und Entwicklungsgesellschaft (DEG) has committed $11.9 million in Bangladeshi apparel manufacturer MBM Group.

DEG, which is a subsidiary of KfW, a German state-owned development bank, disclosed that its investment will be used to improve MBM’s overall efficiency and profitability and strengthen its competitiveness, among others.

MBM Group is one of the leading players in Bangladesh’s garments industry. The group comprises MBM Garment, which was established in 1983 in Dhaka as an operating holding company with two subsidiaries — Cutting Edge International Ltd and Absolute Quality Wear Ltd.

DEG said MBM, whose main project shareholders are MBM Garments Ltd and Wasim Rahman, is involved in producing and exporting readymade woven garments mainly to the US and the EU.

The investment, DEG added, will create more than 3,000 new jobs and strengthen the market and sector by enhancing market share.

“Furthermore, it provides an added value-support in environmental and social management through the action plan. A long-term financing required for capex is not readily available for the private sector,” The Dutch finance institution said.

The investment also comes as DEG considers Bangladesh a future market. DEG has so far invested $68.3 million in the country.

For almost 60 years DEG has been a reliable partner to private-sector companies and financial service providers operating in developing markets. Its customers are based in developing and emerging countries, Germany, and other industrialised nations.

The firm has a 9 billion euros ($10.8 billion) portfolio spread across 80 countries according to information on its website. About a third of the portfolio is in investments in Asia.

In March, DEG committed $22 million in Asia Partners I, the debut vehicle of Singapore-headquartered Asia Partners. The fund, which closed at $384 million, is the largest debut technology fund that is focused specifically on Southeast Asia.

It also invested $22 million in the third Southeast Asia fund of Singapore-based venture capital firm Openspace Ventures.

“The companies we finance create qualified jobs and income, boost economic growth, create local value, and support the transfer of know-how. As a result, they make important contributions to sustainable development in accordance with the United Nations’ Sustainable Development Goals (SDG),” DEG said on its website.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.