RFL Electronics signs $15m loan agreement with CDC

UK development finance group CDC has signed an agreement to provide $15 million to Pran-RFL Group sister concern RFL Electronics Limited.

The seven-year term loan will be used to purchase equipment for producing consumer electronics, the Pran-RFL Group said in a press release.

Pran-RFL Group Corporate Finance Director Uzma Chowdhury and CDC Head of Corporate Debt Richard Palmer signed the agreement in Dhaka on Wednesday.

“Consumer electronics goes a long way in improving livelihood if it can be offered at affordable price,” Chowhury said. “In order to make it affordable, the industry needed to be setup within Bangladesh. We are delighted to have CDC as our partner.”

“As Bangladesh’s economy grows we see our investment in RFL Electronics as an opportunity to create jobs, meet the growing demand for consumer goods and help the country boost its local manufacturing,” said Palmer.

Standard Chartered Bank Bangladesh will also invest an additional $3 million in RFL Electronics Limited, putting the total investment package at $18 million.

Pran-RFL estimates that 1,500 manufacturing jobs will be created with support from this investment.

Under its Vision brand, RFL Electronics produces televisions, refrigerators, air-conditioners, rice cookers, blenders, microwave ovens, electric kettles, infrared cookers, roti makers, room heaters, irons and fans in Bangladesh.

Pran-RFL Group Chairman and CEO Ahsan Khan Chowdhury, RFL Group Managing Director RN Paul, CDC Head of South Asia Srini Nagarajan and CDC Investment Directors Rahul Shah, Nicolas Pitiot and Partha Shah were also present at the event on Wednesday.