IFC leads $175.5m investment in Summit Group’s power projects

International Finance Corporation (IFC), the private investment arm of World Bank, has led a $175.5 million investment in independent power producer, Summit Group‘s projects in Bangladesh, reports DealStreetAsia The Singapore-based financial news and intelligence platform had first reported that IFC was looking to invest around $170 million in the Bangladesh-based company. The investment was made through IFC Emerging Asia Fund, an investment fund managed by IFC Asset Management Company (AMC), and EMA Power, a joint venture between Daelim Energy and Islamic Development Bank Infrastructure Fund II, as per a company statement.
With the backing of IFC and EMA Power, the Summit Group aims to attract future rounds of funding from international investors through private and public markets. “The investment, via a newly set up Singapore company, Power International, is part of Summit Group’s plans for raising finance from international markets. The sizable capital raised from the premier investor group, led by IFC, shows the commitment that these investors have towards Summit Group and Bangladesh,” said Muhammed Aziz Khan, chairman and managing director of Summit Group.
This latest funding will help Summit Group to install green-field electricity-generation plants, including a 500 MW dual-fuel combined-cycle power plant and a 150 MW heavy fuel oil-based power plant. IFC previously also financed Summit Group-related projects Khulna Power in 1999 and Bibiyana in 2015. At present, Summit Group has approximately 1500 MW of power generation capacity and is the largest independent power producer in Bangladesh.
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). It has successfully attracted international debt financing from institutions such as IFC, Islamic Development Bank, DEG of Germany, FMO of Netherlands, CDC of UK, and Standard Chartered Bank.
“We, along with IFC and IFC Emerging Asia Fund, are glad to support the leading independent power producer in the country to step up to a new level with enhanced access to international capital markets,” Stephen Vineburg, chairman of EMA Power, said.
IFC has provided a combination of investments and advisory services in Bangladesh, in fiscal year 2015 lone, the organisation invested $590.1 million in the country. IFC committed $635 million in Bangladesh, in own and mobilised funds across 13 projects, for the fiscal year ended June 30, 2016. IFC’s committed portfolio in Bangladesh as of that date was about $1 billion in 47 projects.

IFC leads $175.5m investment in Summit Groups power projects

International Finance Corporation (IFC), the private investment arm of World Bank, has led a $175.5 million investment in independent power producer, Summit Groups projects in Bangladesh, reports DealStreetAsia The Singapore-based financial news and intelligence platform had first reported that IFC was looking to invest around $170 million in the Bangladesh-based company. The investment was made through IFC Emerging Asia Fund, an investment fund managed by IFC Asset Management Company (AMC), and EMA Power, a joint venture between Daelim Energy and Islamic Development Bank Infrastructure Fund II, as per a company statement. With the backing of IFC and EMA Power, the Summit Group aims to attract future rounds of funding from international investors through private and public markets. The investment, via a newly set up Singapore company, Power International, is part of Summit Groups plans for raising finance from international markets. The sizable capital raised from the premier investor group, led by IFC, shows the commitment that these investors have towards Summit Group and Bangladesh, said Muhammed Aziz Khan, chairman and managing director of Summit Group. This latest funding will help Summit Group to install green-field electricity-generation plants, including a 500 MW dual-fuel combined-cycle power plant and a 150 MW heavy fuel oil-based power plant. IFC previously also financed Summit Group-related projects Khulna Power in 1999 and Bibiyana in 2015. At present, Summit Group has approximately 1500 MW of power generation capacity and is the largest independent power producer in Bangladesh. 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). It has successfully attracted international debt financing from institutions such as IFC, Islamic Development Bank, DEG of Germany, FMO of Netherlands, CDC of UK, and Standard Chartered Bank. We, along with IFC and IFC Emerging Asia Fund, are glad to support the leading independent power producer in the country to step up to a new level with enhanced access to international capital markets, Stephen Vineburg, chairman of EMA Power, said. IFC has provided a combination of investments and advisory services in Bangladesh, in fiscal year 2015 lone, the organisation invested $590.1 million in the country. IFC committed $635 million in Bangladesh, in own and mobilised funds across 13 projects, for the fiscal year ended June 30, 2016. IFCs committed portfolio in Bangladesh as of that date was about $1 billion in 47 projects.