JERA buys 22% stake in Bangladesh's Summit Power for $330m

JERA will get its hands on 1,941MW of Summit’s assets.

JERA bought a 22% stake in Bangladesh’s largest independent power producer (IPP) Summit Power International for $330m, an announcement revealed.

“This partnership will support our investment program of $3b by 2022 in Bangladesh,” said Summit founder chairman Muhammed Aziz Khan.

International Finance Corporation (IFC), IFC Emerging Asia Fund, and EMA Power, were shareholders of Summit since 2016 until now, and will exit through this transaction. However, IFC will continue to be a large lender to Summit.

Summit has a generating capacity of 1,941MW, about 583MW under construction and more than 3,000MW in the pipeline. It also owns and operates a Floating Storage and Regasification Unit (FSRU) vessel which supplies 500 million mmcfd of gas to Bangladesh.

JERA’s participation in the energy supply chain ranges from participation in LNG and other fuel resource projects and fuel procurement to fuel transportation to power generation.