Tk 3.95b syndicated term loan for Summit Group
FE Report | Monday, 28 July 2008
Eighteen banks and financial institutions will provide loan worth Tk 3.955 billion to Summit Group to generate at least 110 megawatts (MW) of electricity through installation of four power plants.
The Industrial and Infrastructure Development Finance Company Limited (IIDFC), a leading financial institution, has arranged the syndicated term loan facility for two new companies of the Summit Group.
A signing ceremony was held at a local hotel Sunday night in this connection.
"Such a loan will help meet the growing demand of electricity particularly in the rural areas of the country," Managing Director of the IIDFC Asaduzzaman Khan told the FE Sunday after signing the contract.
The new companies - Summit Uttaranchol Power Company Limited (SUPCL) and Summit Purbanchol Power Company Limited (SPPCL) - will install the plants in Comilla, Narayanganj, Gazipur and Sirajganj.
The total cost of the project is Tk 4.972 billion while the Summit Group will receive Tk 3.955 billion as syndicated term loan that will be paid within the next eight years at 14.00 per cent interest.
However, equity portion amounting to Tk 995.28 million was raised by issuance of right shares by Summit Power Limited for investment in SUPCL and SPPCL, according to the project document.
The 11 MW power plant in Ullapara, Sirajganj is expected to start its commercial operation by December 2008 while the rest of the three 33MW power plants are expected to start operation by January 2009, the document said.
The Industrial and Infrastructure Development Finance Company Limited (IIDFC), a leading financial institution, has arranged the syndicated term loan facility for two new companies of the Summit Group.
A signing ceremony was held at a local hotel Sunday night in this connection.
"Such a loan will help meet the growing demand of electricity particularly in the rural areas of the country," Managing Director of the IIDFC Asaduzzaman Khan told the FE Sunday after signing the contract.
The new companies - Summit Uttaranchol Power Company Limited (SUPCL) and Summit Purbanchol Power Company Limited (SPPCL) - will install the plants in Comilla, Narayanganj, Gazipur and Sirajganj.
The total cost of the project is Tk 4.972 billion while the Summit Group will receive Tk 3.955 billion as syndicated term loan that will be paid within the next eight years at 14.00 per cent interest.
However, equity portion amounting to Tk 995.28 million was raised by issuance of right shares by Summit Power Limited for investment in SUPCL and SPPCL, according to the project document.
The 11 MW power plant in Ullapara, Sirajganj is expected to start its commercial operation by December 2008 while the rest of the three 33MW power plants are expected to start operation by January 2009, the document said.