SUMMIT MEGHNAGHAT POWER COMPANY LTD
Status: Approved investmentWhy disclosure?
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Disclaimer
The information as disclosed is indicative and provided on an "as-is/as available" basis for general informational purposes only and should not be construed as financial, legal or investment advice, nor as a commitment or an offer to arrange or provide any financing. The final decision to provide financing is subject to the terms and conditions of FMO in its sole and absolute discretion. When providing links to other sites, FMO bears no responsibility for the accuracy, legality or content of the external site or for that of subsequent links. The information on proposed investment for high-risk investments is made available in the language relevant to the country or region where the bulk of operations take place. Translations of any information into languages other than English are intended as a convenience for local stakeholders. In case of any discrepancy, the information provided in English will prevail.
Who is our customer
Summit Meghnaghat Power Company Ltd., incorporated in Bangladesh, will develop, construct and operate a 335MW dual fuel (gas/HSD) combined cycle power plant near Dhaka, Bangladesh.
What is our funding objective?
Long-term finance is scarcely available in Bangladesh, which hampers projects such as this power plant that require longer tenors. FMO invested US$25 million alongside other development finance institutions in a long-term tranche, which will be loaned to Summit Meghnaghat. FMO is also providing US$5 million to the company under a commercial tranche, in order to fill a finance gap.
Why do we fund this investment?
The project contributes substantially to the availability and reliability of electricity in Bangladesh, a country which currently has an electrification rate of approximately 60% and faces frequent black-outs.
More investments
| Date | Total FMO financing |
|---|---|
| 4/10/2014 | USD 5.00 MLN |
- Region
- Asia
- Country
- Bangladesh
- Sector
- Energy
- Effective date
- 4/10/2014
- Total FMO financing
- USD 25.00 MLN
- Funding
- FMO NV
-
Risk categorization on environmental and social impacts, A = high risk, B+ = medium high risk, B = medium risk, C = low risk
Environmental & Social Category
(A, B+, B or C) - B+