BSS-29 Summit receives $140m from int’l institutions for power plant construction





Summit receives $140m from int’l institutions for power plant construction

DHAKA, May 15, 2020 (BSS) – Clifford Capital Pte Ltd of Singapore and Sumitomo Mitsui Banking Corporation (SMBC) of Japan are set to provide long term financing of $140 million (Taka 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 press release said here today.

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)and 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 release.

Chairman of Summit Group Muhammed Aziz Khan said in this connection, “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.”

Audra Low, chief executive officer (CEO) of Clifford Capital, 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.”

Jeanne Soh, head of Power, Renewables and Infrastructure, Structured Finance Department Asia-Pacific, SMBC said, “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.”

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 likely to receive the last installment of the funding after the lockdown ends.