Dhaka, Bangladesh, September 8, 2016—IFC,
a member of the World Bank Group, 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, have invested $175.5 million to finance local independent power
producer, Summit Group's future power projects in energy-scarce Bangladesh.
Nearly a third of Bangladesh’s 160 million people do not have access to
grid-connected electricity. This investment will enable 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,
to help address the country’s critical energy gap.
Muhammed Aziz Khan, Chairman and Managing Director of Summit Group, 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.”
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.
Wendy Werner, IFC Country Manager for Bangladesh, Bhutan, and Nepal, said,
“IFC, along with other co-investors, will 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
IFC previously financed Summit Group-related projects Khulna Power in 1999
and Bibiyana in 2015.
Stephen Vineburg, Chairman of EMA Power, said, “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.”
IFC promotes sustainable growth and private-sector development in Bangladesh
by investing in critical infrastructure, boosting financial inclusion,
enhancing textiles competitiveness, and supporting reforms to make doing
business easier for the private sector. IFC committed $635 million in Bangladesh,
in own and mobilized 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.
About Summit Group
The Summit Group was founded in 1972 and the power business was set up
in 1985. Today, the 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), 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.
About EMA Power Investment Limited
EMA Power Investment Limited is a joint venture between Daelim Energy Co.,
Ltd. and the Islamic Development Bank Infrastructure Fund II. Established
in DIFC, Dubai in April 2016, the purpose of EMA Power is to invest and
own power generation assets in the IDB member countries.
About IFC Asset Management Company
IFC Asset Management Company (AMC), a wholly-owned subsidiary of IFC, invests
third party capital, enabling investors to benefit from IFC’s expertise
in achieving strong equity returns, as well as positive development impact
in the countries in which it invests. As of July 2016, AMC has raised $9.1
billion of capital across 13 investment funds. For more information, visit
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org.