SG Clifford Capital closes $140m financing for Summit Power’s Bangladesh project

Dhaka, Bangladesh. Photo by Ahmed Hasan on Unsplash

Singapore-based debt financing specialist Clifford Capital has announced the closing of a $140-million senior secured term loan financing for Summit Gazipur II Power Limited, a subsidiary of Summit Power International, according to a press announcement.

The loan will be used to support the development, construction and operation of a 300MW oil-fired power plant located in Gazipur district in Bangladesh.

According to the announcement, the financing comprises a fixed-rate term loan provided by Clifford Capital and a floating rate loan facility from Japan’s Sumitomo Mitsui Banking Corporation (SMC).

Clifford Capital also acted as the joint coordinator in the transaction.

The transaction is also the first project financing between Clifford Capital and Singapore-based Summit Power.

Besides, this is also the first independent power producer (IPP) in Bangladesh to be financed solely by international commercial financing institutions. Previous projects in the country were financed by development finance institutions and multilateral development banks.

“Clifford Capital and SMBC have demonstrated their value addition by working with other financiers and advisers as well as Bangladesh Bank to achieve this significant milestone by delivering a competitive bespoke financing package,” said Muhammed Aziz Khan, the Chairman of Summit Group of Companies.

Gazipur II Power was awarded the 300 MW project in June 2017, under a scheme by the Power Division of Bangladesh Ministry of Power, Energy and Mineral Resources, to deliver 2,600 MW of fast track power projects to the country.

The Gazipur II project will supply power to the Bangladesh Power Development Board (BPDB) under a 15-year Power Purchase Agreement (PPA) with a long-term fuel supply agreement with Summit Oil & Shipping Co. Ltd (SOSCL), another subsidiary of Summit Group of Companies. The IPP then achieved commercial operations on May 10,  2018.

Summit Power is Bangladesh’s largest IPP with 1,941 MW of generating capacity with 583 MW under construction. The company also owns and operates a floating storage and regasification unit (FSRU) vessel and supplies around 500 million cubic feet per day of re-gasified gas to Bangladesh.

Japan-based energy company JERA Co., Inc. recently acquired a 22 per cent stake in Summit Power, which also previously received equity investment in its FSRU project from Mitsubishi Corporation.

Clifford Capital has committed over $2 billion to various projects across Asia, the Middle East, Africa, Europe, as well as Central and South America.

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.