ADB offers $121 million for 100 MW solar project in Bangladesh

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The ADB will provide a $121 million loan to Bangladeshi textile producer Paramount Textile PLC to set up a 100 MW solar power plant.

Paramount Textile’s Dynamic Sun Energy unit will build and operate the facility, which will be built in Pabna district, in central Bangladesh.

The project will be the country’s first private sector utility-scale solar facility to secure financial support from the ADB. The Manila-based lender has arranged, structured, and syndicated the debt package as the sole mandated lead arranger and bookrunner.

The financing package includes a $46.75 million loan from ADB, a syndicated B-loan of $28.05 million from ILX Fund I, and a syndicated parallel loan of $46.75 million from the Japan International Cooperation Agency.

“As Asia’s climate bank, 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.”

Paramount Textile is a publicly listed company and is one of the largest woven textile manufacturers in Bangladesh. In August 2022, it switched on a 30 MW solar plant in northern Bangladesh.

Author: Syful Islam

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