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.