Green Delta Capital Limited, a leading Merchant Bank in Bangladesh has signed a landmark transaction for 35 MW Spectra Solar Park Limited (SSPL) by arranging USD 34 Million.
ADB has signed an agreement with the private sector investor Spectra Solar Park Limited (SSPL) for USD 17.7 million (EUR 15.5m) in funding and is co-financing the project with Germany's Deutsche Investitions- und Entwicklungsgesellschaft (DEG), says a press release.
The financing comes in the form of a loan from ADB and a loan from the ADS-Administered Canadian Climate Fund for the Private Sector in Asia II (CFPS II).
The German development finance institution DEG participates, as co-financer financed for USD 16.4 Million where Green Delta Capital played an instrumental role being a lead advisor to the transaction for this milestone debt transaction.
This is the first 35 megawatts private sector solar plant in Bangladesh getting financing from multilateral institutions like ADB and DEG.
Once operational, the plant is expected to provide over 50 gigawatt-hours of clean electricity annually to the national grid and avoid 33,200 metric tons of carbon dioxide emissions.
"ADB's financing with co-financing by DEG in this project will help to scale up solar projects and unlock foreign investments for renewable energy in Bangladesh," said Managing Director and Chief Executive Officer of Green Delta Capital Md Rafiqul Islam.
"This project strongly demonstrates that the solar energy sector in Bangladesh is an attractive destination for private sector engagement," said Chakraborty, Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB's Private Sector Operations Department.
"DEG is very proud of taking an active role in helping Bangladesh on its route to more renewable energy. This project will certainly help to catalyze more private and institutional investors. On the back of this successful transaction, DEG is looking to do more projects in the renewables sector in Bangladesh," said Andreas Cremer, director of Energy/Infrastructure at DEG.
"Bangladesh is committed to combating climate change and increasing energy access from renewable energy sources and we are grateful to ADB and DEG for their commitment and assistance," said Aftabuddin, managing director of Spectra Solar Park Limited.