OMERA PETROLEUM LIMITED
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
Omera Petroleum Limited (OPL) in Bangladesh is developing an LPG project to import, store, bottle and distribute liquefied petroleum gas throughout Bangladesh. OPL sources its LPG on the global market. The company will mainly target domestic use as it is considered one of the safest, eco-friendly and healthy cooking fuels. OPL is one of the subsidiaries of a strong and reputable energy player in Bangladesh and benefits from its sector and market experience and an established brand.
What is our funding objective?
FMO has financed and invested in the development and construction of 4 LPG plants with a local capacity of 100,000 ton/year. Total project costs amount to approximately US$60 million. Through the Infrastructure Development Fund FMO is providing US$9.5 million senior debt and approximately US$5.5 million equity. The funding will be used for the construction of the main terminal, the three satellite plants and the distribution network. The main terminal is located in Mongla (close to one of the country's principal seaports) where the LPG is delivered and then redistributed to the three satellite bottling plants located in Dhaka, Bogra and Chittagong and further on to private and commercial users.
Why do we fund this investment?
LPG can be used for cooking, heating, electricity generation, transportation (autogas), refrigerating and many other industrial and commercial applications. Given the lack of natural gas in rural and urban areas in Bangladesh due to the fast growing economy, households are looking for alternatives for cooking. LPG is a more expensive alternative for cooking compared to charcoal and kerosine but the health and environmental benefits easily outweigh the cost, for those who can afford it. By engaging in this transaction, FMO contributes to the positive impact that LPG has on the health and productive time consumption on local Bangladeshis, especially women and children. OPL is expected to reach close to 250,000 households, representing 1.2 million people. The local banking sector was not able to meet the full financing needs of OPL and by doing this transaction FMO-IDF filled the gap. The additional equity will provide sufficient buffer to the debt providers. OPL is also able to benefit from FMO’s name and experience as an international finance institution, which may help in attract potential future investors and financiers.
More investments
| Date | Total FMO financing |
|---|---|
| 9/3/2018 | BDT 157.03 MLN |
| 2/5/2015 | BDT 386.40 MLN |
- Region
- Asia
- Country
- Bangladesh
- Sector
- Energy
- Effective date
- 12/19/2014
- Total FMO financing
- USD 9.50 MLN
- Funding
- Building Prospects
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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+