Bangladesh is one of the fastest growing Asian economies (2015 GDP growth of 6.6%) yet suffers from acute power shortages resulting in nearly 26% of the 160 million population not having access to grid-connected electricity. The Government of Bangladesh has shown continued commitment to supporting and developing the power sector as it is vital to the country’s economy and sustained growth.
Recently the Summit group announce that International Finance Corporation (IFC), a member of the World Bank Group, IFC Emerging Asia Fund, an investment fund managed by IFC Asset Management Company, and EMA Power, a joint venture between Daelim Energy and the Islamic Development Bank (IDB) Infrastructure Fund II, have together invested approximately US$175.5 million to finance the Summit Group’s growing power generation portfolio in Bangladesh.
This transaction will enable the Summit Group to further invest in new electricity generation plants. Summit’s projects in pipeline includes a 750 MW LNG based power plant, a 350 MW dual fuel combined cycle power plant and a 150 MW HFO based power plant, which will help address the critical electricity supply and demand gap and send a positive signal to future investors. The investment, via a newly set up Singapore company, Power International, is part of the Summit Group’s plans for raising funds from international markets, and shows the commitment that these investors have to the Summit Group and Bangladesh.
The Summit Group currently has approximately 1500 MW of power generation capacity and is the largest independent power producer in Bangladesh, operating about 9% of the country’s installed generation capacity, 19% of capacity owned and operated by the private sector, and generating about 15% of overall output in the country in 2015. Its most recently developed power plants, Summit Bibiyana 2 (341MW combined cycle gas turbine) and Summit Meghnaghat (337MW combined cycle gas turbine with dual fuel capabilities), are equipped with GE turbines thereby providing efficient sources of power, competitive in the merit order dispatch. Both projects successfully attracted international debt financing from institutions such as IFC; IDB; DEG of Germany; FMO of Netherlands; CDC of UK; and Standard Chartered Bank.
About the Investors
IFC
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org
IFC AMC
IFC Asset Management Company LLC (AMC), a wholly-owned subsidiary of IFC, invests third party capital, enabling investors to benefit from IFC’s expertise in achieving strong equity returns, as well as positive development impact in the countries in which it invests. As of July 2016, AMC has raised $9.1 billion of capital across 13 investment funds. For more information, visit www.ifcamc.org.
EMA Power Investment Limited
EMA Power Investment Limited is a joint venture between Daelim Energy Co., Ltd. and the Islamic Development Bank Infrastructure Fund II. Established in DIFC, Dubai in April 2016, the purpose of EMA Power is to invest and own power generation assets in the IDB member countries.
IDB Infrastructure Fund II and ASMA Capital Partners
Established in 2014, the IDB Infrastructure Fund II, with a target size of US$2 billion, provides an efficient investment vehicle for global and regional investors to capitalize on the infrastructure investment opportunities across Asia, the Middle East and Africa. The IDB Infrastructure Fund II is the successor to the US$730 million IDB Infrastructure Fund L.P. which made significant investments in power, energy, transportation, telecommunications and mining sectors across the Islamic countries.
ASMA Capital Partners B.S.C (c), fund manager of the IDB Infrastructure Fund II, is licensed and regulated by the Central Bank of Bahrain. For more information, visit www.asmacapital.com
Daelim Energy
Daelim Energy, established in 2014, is a power & energy infrastructure developer specializing in project development, capital investment, financing and technical managements in EPC and O&M.
With experienced professionals and extensive networks across the world, Daelim Energy, as a new player, has successfully diversified its power generation assets of 2.5 GW sourced by conventional and renewables in emerging as well as developed markets in such a short period of time. Its pipelines cover a much broader geographical coverage seeking more opportunities to expand horizontal and vertical value chain for sustainable growth. For more information, visit www.daelimenergy.com
Source of Infographics: Summit Group
