Japan invests USD 330m in Summit Power


TOKYO, Oct 7, 2019 (BSS)- In a move to establish major energy infrastructure, including power generation projects in Bangladesh, Japan’s largest energy company JERA Co., Inc. (“JERA”), has acquired a 22 per cent stake in Summit Power International Limited (“Summit”) for USD 330 million.

Summit is the largest independent power producer (IPP) in fast growing Bangladesh, said a press release today.

The investment has been finalized within only four months of signing the memorandum of understanding (MoU) between JERA and Summit in Tokyo, in presence of Prime Minister Sheikh Hasina, State Minister for Energy and Mineral Resources, Nasrul Hamid, MP, State Minister for Foreign Affairs Shahriar Alam, MP, Principal Coordinator of SDG and Chairman of MIDI (Moheshkhali-Matarbari Integrated Infrastructure Development Initiative) Md. Abul Kalam Azad, Ambassador of Bangladesh to Japan Rabab Fatima and Chairman of Summit Group Muhammed Aziz Khan.

As a shareholder of Summit, JERA will strive to increase the corporate value of Summit through the efficient construction and operation of its power generation facilities and contribute to the sustainable economic growth of Bangladesh.

Summit’s founder-chairman Muhammed Aziz Khan expressed his satisfaction with the investment stating, “Much needed technology and capital for Bangladesh’s fast growing power and energy market will be available from JERA with their vast knowledge and balance sheet. JERA by far could be our best partner. This partnership will support our investment program of USD 3 billion by 2022 in Bangladesh.”

International Finance Corp (IFC), IFC Emerging Asia Fund, and United Arab Emirates-based EMA Power Investment, which were shareholders of Summit since 2016, will exit through this transaction, according to the release. However, IFC will continue to be a large lender to Summit, it added.