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Dhaka Tribune

ADB provides $121.55m for Bangladesh's solar power generation

  • Plant expected to generate 193.5GWh of electricity annually
  • ADB arranged, structured, syndicated debt package as sole mandated lead arranger and bookrunner
Update : 30 Apr 2024, 02:37 PM

The Asian Development Bank (ADB) has signed a $121.55 million financing package with Dynamic Sun Energy Private Limited to build and operate a 100MW grid-connected solar photovoltaic power plant in Pabna, Bangladesh.

The plant would be the country's first private sector utility-scale solar facility to secure support from global financiers, according to an official press release.

The ADB arranged, structured and syndicated the debt package as the sole mandated lead arranger and bookrunner.

The financing package comprises a $46.75 million loan from the ADB, a syndicated B-loan of $28.05 million from ILX Fund I, an Amsterdam-based emerging market private credit fund focused on supporting the Sustainable Development Goals with the ADB as lender of record, and a syndicated parallel loan of $46.75 million from the Japan International Cooperation Agency.

"As Asia's climate bank, the 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 mobilizing financing for clean energy facilities and stimulating further investment in sectors where it's needed the most," added Gaboury.

The solar power plant would generate 193.5 gigawatt hours of electricity annually and avoid 93,654 tons 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 the ADB," said PT Managing Director Shakhawat Hossain,

"Partnering with an internationally reputable financial institution such as the ADB affirms PT's dedication to sustainability and marks a significant stride in our journey towards sustainable growth," added Shakhawat.

DSE is owned by Paramount Textile PLC (PT), one of the largest woven textile manufacturers in Bangladesh, which also operates several power plants.

PT manufactures high-quality yarn-dyed and printed woven fabrics using a wide range of yarns, modern weaving technologies and print types. PT was publicly listed on the Dhaka and Chittagong stock exchanges in 2013.

The ADB says it is committed to achieving a prosperous, inclusive, resilient and sustainable Asia and the Pacific while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members–49 from the region.

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