Summit secures $140 million in financing from Clifford Capital, Japan’s SMBC
Summit Group has received $140 million (Tk 1,190 crore) in project financing from international commercial financial institutions for its 300-megawatt Summit Gazipur II Power Plant.
The group received the long-term financing from Clifford Capital Pte Ltd of Singapore and Sumitomo Mitsui Banking Corporation (SMBC), according to a press release.
This was achieved on April 22 during the continued lockdowns in both Bangladesh and Singapore.
The Bangladesh Bank has provided support by processing approvals during the lockdown to facilitate the financing, Summit Group said.
"In the midst of Covid-19 pandemic, receiving long-tenor, low-cost project finance from commercial lenders displays Summit's and Bangladesh's goodwill and reputation in international community," said Muhammed Aziz Khan, chairman of Summit Group of Companies, in the press release.
Clifford Capital is delighted to support Summit Power International (SPL), a Singapore-based infrastructure developer, in the company's plans to expand its energy portfolio in Bangladesh, said Audra Low, chief executive officer of Clifford Capital.
"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."
Jeanne Soh, head of power, renewables and infrastructure, structured finance department for Asia-Pacific at SMBC, said: "We are happy to support our key customer Summit Corporation in connection with this transaction."
Initially the local banks in Bangladesh -- Bank Asia, City Bank, Prime Bank and Mutual Trust Bank -- supported Summit through construction financing of Summit Gazipur II Power and they have been repaid with the long-term loan.
Summit is expected to receive the last installment of the funding after the lockdown ends.
Summit Gazipur II Power is a joint venture of Summit Corporation Ltd and Summit Power Ltd. The project will supply power to the Bangladesh Power Development Board under a 15-year power purchase agreement.
The project was implemented as a fast-track project only in nine-months and began commercial operations on May 10, 2018, and has since been supplying reliable power into the grid.