DBL Group secures $43M DEG debt facility to fund knitwear acquisition
What's the deal? DBL GroupDealroom has a profile for this one. Try Dealroom →, a Bangladesh-based textile manufacturer, has signed a $43 million long-term debt financing agreement with DEG — Deutsche Investitions- und Entwicklungsgesellschaft, the German development finance institution. Of the total, $16 million is co-financed through the Global Innovation Investment Fund (GIIF), set up by DEG and Germany's Federal Ministry for Economic Cooperation and DevelopmentDealroom has a profile for this one. Try Dealroom →.
What's the endgame? The money funds DBL Group's acquisition of Glory Textiles & Apparels Ltd. (GTAL), a vertically integrated knitwear firm, and its conversion into a fully integrated, DBL-standard facility.
Why now? The facility marks the third financing partnership between DBL Group and DEG. Earlier deals backed Color City Ltd. and Matin Spinning Mills Ltd.
By the numbers: The investment is expected to create 2,150 jobs, 35% of them held by women recruited from local communities. DEG will also support GTAL's decarbonisation plan through its Business Support Services.
The signal: The deal reflects development finance flowing into Bangladesh's export-oriented textile sector, tying capital to job creation and lower-carbon manufacturing.
Read more: TextileFocus
Image credit: HalifaxArchvie
