This venture marks the country’s inaugural private sector utility-scale solar initiative to garner support from global financiers, according to a statement released today by the Manila-based multilateral lender.

ADB played a pivotal role in orchestrating, organizing, and syndicating the debt package, assuming the mantle of the sole mandated lead arranger and book-runner for the endeavor.

The financing bundle encompasses a $46.75 million loan from ADB, a syndicated loan amounting to $28.05 million from ILX Fund I, an Amsterdam-based emerging market private credit fund devoted to advancing the Sustainable Development Goals (SDGs) with ADB as the primary lender, and a syndicated parallel loan worth $46.75 million from the Japan International Cooperation Agency.

Suzanne Gaboury, Director General of ADB’s Private Sector Operations Department, remarked, “As Asia’s climate bank, ADB welcomes the opportunity to bolster renewable energy in Bangladesh, where securing long-term financing for such ventures poses a challenge. This collaboration underscores our leadership in mobilizing funds for clean energy endeavors and catalyzing further investment in critical sectors.”

The solar power facility is projected to yield 193.5 gigawatt-hours of electricity annually while curbing approximately 93,654 tonnes of carbon dioxide emissions per year.

Shakhawat Hossain, Managing Director of Paramount Textile PLC (PT), expressed enthusiasm about securing funding for one of Bangladesh’s largest private sector solar initiatives to date, with backing from international lenders led by ADB.

In April 2022, Paramount Textile disclosed to the Dhaka Stock Exchange its intention to establish a joint venture with Dynamic Sun Energy Private Ltd for the establishment of a 100-megawatt solar power plant in Pabna Sadar.