IFC injects $175 million into Bangladesh power major Summit Group’s generation projects

A member of the World Bank Group, the IFC says it has invested $175.5 million to finance Summit Group's future power-generation projects in Bangladesh.

The fund comes from the IFC Emerging Asia Fund, an investment fund managed by IFC Asset Management Company, and EMA Power, a joint venture between Daelim Energy and Islamic Development Bank (IDB) Infrastructure Fund II.

With this investment, the Summit Group will 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, to help address the country’s energy gap.

Chairman and Managing Director of Summit Group Mohammed Aziz Khan said 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,” he was quoted as saying in an IFC statement on Thursday.

With its Singapore base and support from IFC, IFC Emerging Asia Fund, and EMA Power, Power International aims to attract future rounds of funding from international investors through private and public markets.

IFC Country Manager for Bangladesh Wendy Werner said the IFC, along with other co-investors, would help Summit Group add significant electricity-generation capacity to Bangladesh’s national grid.

“This is a positive signal to future developers and investors in the Bangladesh power sector.”

IFC previously financed Summit Group-related projects Khulna Power in 1999 and Bibiyana in 2015.

Chairman of EMA Power Stephen Vineburg said as an IDB member country, Bangladesh is a key market for us.

 “We, along with IFC and IFC Emerging Asia Fund, are glad to be able to support the leading independent power producer in the country to step up to a new level with enhanced access to international capital markets.”

The representatives of all the groups met in a meeting in Dhaka on Wednesday.