The Asian Development Bank (ADB) has signed a US $ 121.55 million financing package with Dynamic Sun Energy Private Limited to construct and operate a 100-megawatt (MW) grid-connected solar photovoltaic power plant in Pabna, Bangladesh.
As announced on Monday by the Manilla-based loan agency, the project is the nation’s first utility-scale solar installation in the private sector to receive backing from international investors.
ADB arranged, structured, and syndicated the debt package as the sole mandated lead arranger and book-runner.
A US $ 46.75 million loan from ADB, a US $ 28.05 million syndicated B-loan from ILX Fund I, an Amsterdam-based emerging market private credit fund with ADB serving as lender of record, and a US $ 46.75 million syndicated parallel loan from the Japan International Cooperation Agency make up the financing package.
“As Asia’s climate bank, ADB welcomes the opportunity to support renewable energy in Bangladesh, where obtaining long-term financing for such projects is a challenge,” said ADB Private Sector Operations Department Director General Suzanne Gaboury.
“This partnership exemplifies our lead role in mobilising financing for clean energy facilities and stimulating further investment in sectors where it’s needed the most.”
The solar power plant will generate 193.5 gigawatt-hours of electricity annually and avoid 93,654 tonnes of carbon dioxide emissions annually.
“We are delighted to secure financing for one of the largest private sector solar projects in Bangladesh to date, with the support of international lenders led by ADB,” said PT Managing Director Shakhawat Hossain.
“Partnering with an internationally reputable financial institution such as ADB affirms PT’s dedication to sustainability and marks a significant stride in our journey towards sustainable growth.”
Paramount Textile PLC (PT), one of Bangladesh’s biggest producers of woven textiles and the owner of multiple power plants, is the owner of DSE.
PT uses an extensive variety of yarns, cutting-edge weaving techniques, and print kinds to produce premium yarn-dyed and printed woven fabrics.
In 2013, PT went public on the stock exchanges of Chittagong and Dhaka.