Summit receives $140m from international commercial institutions for power plant construction

Clifford Capital Pte Ltd of Singapore and Sumitomo Mitsui Banking Corporation (SMBC) of Japan are set to provide long term financing of $140 million (Tk 11.90 billion) to Summit Power Ltd for 300 MW Summit Gazipur II Power Ltd.  

This is a milestone in Bangladesh’s international investment and financing as Summit is the first local Independent Power Producer (IPP) to receive financing from international commercial institutions, according to a statement.

Previously most of the financing had come from development finance institutions such Deutsche Entrepreneurial Development Bank and international finance corporations Asian Development Bank, Islamic Development Bank (IsDB), etc.

The financial closure was achieved on April 22, 2020 during the lockdowns in both Bangladesh and Singapore.

Bangladesh Bank has provided outstanding support by processing various approvals during this lockdown period to facilitate the financing process, said the statement.

“In the midst of COVID-19 pandemic, to receive long-tenor low cost project finance from commercial lenders, shows Summit and Bangladesh’s goodwill and reputation with the international community. We are grateful to our customers and financiers; and assure hard diligent work to progress,” Chairman of Summit Group of companies Muhammed Aziz Khan said in this connection.

Chief Executive Officer (CEO) of Clifford Capital Audra Low said, “Clifford Capital is delighted to support Summit Power International, an established Singapore-based infrastructure developer, in the company’s plans to expand its energy portfolio in Bangladesh.”

 “We are happy to support our key customer Summit Corporation in connection with this transaction, and would like to extend our congratulations to the whole team who worked hard to close this important transaction under unprecedented circumstances. We look forward to a long and fruitful cooperation between SMBC and Summit Corporation.” said Jeanne Soh, head of Power, Renewables and Infrastructure, Structured Finance Department Asia-Pacific, SMBC.

Initially the local banks – Bank Asia, The City Bank, Prime Bank and Mutual Trust Bank had supported Summit through construction financing of Summit Gazipur II Power Limited and they have been repaid with this long term loan.

Summit is expected to receive the last instalment of the funding after the lockdown ends.

[email protected]