LDI, a medical manufacturer building a new manufacturing facility in Rochester’s industrial park, has been granted a $3 million loan for the project by the state Business Finance Authority.

The expansion is expected to bring 40 new jobs to the city, the BFA said.

The agency also announced it is issuing a $75 million conduit bond to enable Pennichuck Waterworks to consolidate older bonds on its books, taking advantage of the lower interest rate environment currently available. Conduit bonds are loans from a private lender to a borrower and the state takes no risk in the transaction, said the BFA.

“In order for our economy to continue to grow, it is critical that our businesses have access to capital,” said James Key-Wallace, the BFA’s executive director. “We are pleased to work with banks to help them provide credit enhancements to New Hampshire companies so they can continue to create high-quality jobs and expand their operations.”