The Asian Development Bank (ADB) has signed a $121.55 million financing package with Dynamic Sun Energy Private Limited to build and operate a 100-megawatt (MW) grid-connected solar photovoltaic power plant in Pabna, Bangladesh.
The plant is the country's first private sector utility-scale solar facility to secure support from global financiers, an official release said.
ADB arranged, structured, and syndicated the debt package as the sole mandated lead arranger and bookrunner.
The financing package comprises a $46.75 million loan from ADB, a syndicated B-loan of $28.05 million from ILX Fund I, an Amsterdam-based emerging market private credit fund focused on supporting the Sustainable Development Goals with ADB as lender of record, and a syndicated parallel loan of $46.75 million from the Japan International Cooperation Agency.
"As Asia's climate bank, ADB welcomes the opportunity to support renewable energy in Bangladesh, where obtaining long-term financing for such projects is a challenge," said ADB Private Sector Operations Department Director General Suzanne Gaboury.
"This partnership exemplifies our lead role in mobilizing financing for clean energy facilities and stimulating further investment in sectors where it's needed the most," added Suzanne.
The solar power plant will generate 193.5 gigawatt-hours of electricity annually and avoid 93,654 tons of carbon dioxide emissions annually.
