Summit Power, an affiliate of Bangladesh’s major conglomerate Summit Group, owns and operates power generation facilities with a combined capacity of approximately 1.9GW
Image: The investment in Summit Power has been made following a memorandum of understanding signed by the parties in May 2019. Photo: courtesy of Summit Power International Limited.
Japan’s JERA has acquired a 22% stake in Bangladesh-based independent power producer (IPP) Summit Power International in a deal worth $330m.
Summit Power, an affiliate of Bangladesh’s major conglomerate Summit Group, owns and operates power generation facilities with a combined capacity of approximately 1.9GW.
The company is also constructing approximately 583MW of power generation facilities, with over 3GW of new projects in the pipeline.
JERA aims to establish major energy infrastructure in Bangladesh
The acquisition is a part of JERA’s effort to establish major energy infrastructure, including power generation projects in the country.
The investment in Summit Power has been made following a memorandum of understanding signed by the parties in May 2019, on the development of energy infrastructure projects in Bangladesh.
Under the terms of the MOU, Summit and JERA Asia agreed to initiate a large energy infrastructure project, which will have capacity to handle 20 million tonnes of bulk cargo per annum in Matarbari area in Cox’s Bazar, Bangladesh.
Summit founder chairman Muhammed Aziz Khan said: “Much needed technology and capital for Bangladesh’s fast growing power and energy market will be available from JERA with their vast knowledge and balance sheet.
“JERA by far could be our best partner. This partnership will support our investment program of USD 3 billion by 2022 in Bangladesh.”
The investment also allows JERA to explore business opportunities in Bangladesh and further expand its earnings base.
JERA Asia CEO Toshiro Kudama said: “JERA is fully dedicated and committed to the future development and economic growth of Bangladesh through this precious partnership with Summit. We believe that Summit has unrivaled presence and capacity in the country.
“Our mission is to provide comprehensive solutions with state-of-the-art technologies to meet the underlying challenges in the energy industry globally.”
The transaction results in the exit of shareholders IFC, IFC Emerging Asia Fund, and EMA Power from Summit while IFC will continue to be a major lender to Summit.