Sembcorp's Power Plant Project in Bangladesh
22 December 2016
Clifford Capital provided a US$103m financing for Sembcorp Utilities’ 426 MW gas-fired power plant in the Sirajganj district of Bangladesh in what is the longest tenor commercial project financing loan achieved to date in that country, setting a new benchmark for commercial lenders’ participation in Bangladesh’s ambitious infrastructure development plans.
This build-own-operate project was awarded to Sembcorp Utilities by the Government of Bangladesh in September 2015 under a public-private partnership, the first of its kind with a foreign investor in the power sector in Bangladesh. Sembcorp Utilities has a 71% stake in the project while Bangladesh's state owned North-West Power Generation Company owns 29%. When completed in 2018, the plant will supply power to the grid under a 22.5-year power purchase agreement with the Bangladesh Power Development Board.
The Project is the first green-field project financing concluded between Clifford Capital and Sembcorp. Clifford Capital worked closely with Sembcorp from the early development stages of the Project through the award of the Project by the Government of Bangladesh, culminating in the execution of the financing agreements