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.
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