Project financing of two subsidiaries of Summit Power International have received Oil and Gas Deal of the Year and Power Deal of the Year awards at the Asset Triple A Asia Infrastructure Awards 2020.
The subsidiaries Summit LNG and Meghnaghat II Power Ltd won the awards in the Best Deals in South Asia category.
The Asset Triple A Awards are the pre-eminent recognition for those that have excelled in their respective industries.
In a statement issued on Monday, Summit Power International said that with the best deals on project financing, Summit can generate power and supply LNG to Bangladesh at a globally competitive rate. This is a big step ahead towards the commercial bankability of private sector infrastructure projects in Bangladesh.
Summit's $97 million debt financing of Summit LNG Terminal Co Ltd received the Oil and Gas Deal of the Year.
Japan's Sumitomo Mitsui Banking Corporation was the mandated lead arranger. It is the first LNG transaction in Bangladesh that was funded on a non-recourse basis solely by an international commercial bank.
The floating storage regasification unit of the terminal started its commercial operations from April 29 last year. The unit can supply 500 million cubic feet of natural gas each day to the national grid.
On the other hand, Summit Meghnaghat II Power Ltd (583MW), currently in its construction phase, won the Power Deal of the Year for securing a $350 million dual-tranche term loan facility.
Summit Group and GE Capital were sponsors of the deal while Standard Chartered Bank (SCB) and the International Finance Corporation were the co-lenders.
Naser Ezaz Bijoy, CEO of SCB, told The Business Standard that they are the onshore security agent, account bank and authorised dealer for both projects.
"It has been a privilege to be the partner of Summit in development over decades," he added.
Swiss SERV was the Export Credit Agency (ECA) structuring and coordinator bank making this deal.
It is the first and largest project financing deal backed by the Swiss ECA in Bangladesh in the independent power producer space.
GE Gas Power is providing the turnkey solution for the power project and is responsible for the design of the facility, supply and installation of the equipment and commissioning works.
The plant is expected to be operational by March 2022 at the lowest cost of Tk2.176 per kWh.