Singapore, May 15, 2020 (PR) - Summit has closed USD 140 Million (equivalent to BDT 1,190 Crore) as long-term financing from Clifford Capital Pte. Ltd. (“Clifford Capital”) of Singapore and Sumitomo Mitsui Banking Corporation (“SMBC”), Japan’s second largest bank for Summit Gazipur II Power Limited (300 MW). This is a milestone in Bangladesh’s international investment and financing as Summit is the first Independent Power Producer (IPP) to receive financing from international commercial institutions. Previously most of the financing had come from development finance institutions (DFIs) such as DEG, FMO, IFC, ADB, IsDB, CDC, etc or had substantial portions in the financing mix.
The financial closure was achieved on April 22, 2020 during the continued lockdowns in both Bangladesh and Singapore. The Bangladesh Bank (BB) has provided outstanding support by processing various approvals during this lockdown period to facilitate the financing process.
Muhammed Aziz Khan, Chairman of Summit Group of Companies remarked, “In the midst of COVID-19 pandemic, to receive long-tenor low cost project finance from commercial lenders express 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. The financing is core to our mandate of supporting companies in Singapore in their overseas investments and stands testament to Clifford Capital’s capabilities to structure, coordinate and execute innovative financings, leveraging on our expertise in the power sector in Bangladesh. It also showcases Singapore’s role as a key infrastructure financing hub for the region with the sponsor, financiers and key advisers for this financing all based in Singapore.”
Jeanne Soh, Head of Power, Renewables and Infrastructure, Structured Finance Department Asia-Pacific, Sumitomo Mitsui Banking Corporation (SMBC) commented, “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 in Bangladesh -- 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 installment of the funding after the lockdown ends.
Summit Gazipur II Power Limited is a joint venture of Summit Corporation Limited and Summit Power Limited (SPL). The Project will supply power to the Bangladesh Power Development Board (BPDB) under a 15-year Power Purchase Agreement with a long-term fuel supply agreement with Summit Oil & Shipping Co. Ltd (SOSCL) the largest fuel oil supplier in Bangladesh. This Project was implemented as a fast-track project only in nine-months and began commercial operations on 10 May 2018, and had since been supplying reliable power into the grid, alleviating the power generation capacity shortages in Bangladesh.