Bangladesh's 300MW oil-fired plant bags $199.75m in loans

It’s the first IPP in Bangladesh financed by international commercial financiers.

Singapore-based infrastructure and maritime debt financing provider Clifford Capital, along with Sumitomo Mitsui Banking Corporation (SMBC), has granted $199.75m (US$140m) in loans for the development, construction, and operation of 300MW oil-fired power plant in Gazipur, Bangladesh, a press release revealed.

Clifford Capital and SMBC granted the senior secured term loan financing to Summit Power International, an infrastructure developer and operator in South Asia headquartered in Singapore.

The financing consisted of a fixed-rate term loan under Clifford Capital and a floating-rate term loan provided by SMBC. Clifford Chance acted as joint coordinator of the deal.

The project was awarded in June 2017 under a scheme by the Power Division of the Ministry of Power, Energy and Mineral Resources of Bangladesh to deliver 2,600MW of fast track power projects to meet the demand in the country.

Further, it will reportedly supply power to the Bangladesh Power Development Board (BPDB) under a 15-year power purchase agreement (PPA) and a long-term fuel supply agreement with Summit Oil & Shipping Co. Ltd (SOSCL), the largest fuel oil supplier in Bangladesh and part of Summit Group of Companies.

This marks the first independent power project (IPP) in Bangladesh to be financed solely by international commercial financing institutions.

The project achieved commercial operations on 10 May 2018.

Also Read

Alternergy secures interconnection deal for 100 MW Wind Project

JERA establishes RE venture in London

Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

I want to download the media kit