Summit Power International has channeled more than $2 billion in foreign direct investment into Bangladesh’s energy infrastructure since its 2016 Singapore incorporation. Its approach established a financing model that attracted partnerships with the International Finance Corporation, JERA Co., General Electric, and Mitsubishi Corporation. The corporate structure has enabled Summit Group to access international capital markets at costs unavailable through Bangladesh’s domestic financial system.
The Singapore framework produced measurable results: an IFC Emerging Asia Fund partnership in 2016, JERA’s $330 million equity investment in the company in 2019, and General Electric’s 20% stake in the Meghnaghat II power plant project. These partnerships brought capital and operational expertise in combined-cycle power generation, LNG infrastructure, and advanced turbine technology, ultimately enabling
“What Bangladesh has is a lot of opportunities and a lot of growth. But what it lacks is governance and what it lacks is a mature financial market, both of which are very much necessary to do long-term infrastructure projects,” said Ayesha Khan, managing director and CEO of Summit Power International.
IFC Investment Enables Corporate Restructuring
The International Finance Corporation’s $175.5 million investment in 2016 established Summit Power International’s Singapore presence. The financing involved IFC directly, IFC Asset Management Company through its Emerging Asia Fund, and EMA Power—a joint venture between Daelim Energy and Islamic Development Bank Infrastructure Fund II.
“IFC facilitated the incorporation of a Singapore entity and invested in the structure, which enabled the Singapore entity to invest back into Bangladesh,” said Khan. “So that was a very important transition period for us and a very important transformation for us. It did change the way we started doing business.”
The IFC relationship began in 1998 when the institution financed Summit Group’s first independent power plant in Khulna. The 2016 equity investment marked an evolution in that relationship, moving from project-level financing to equity participation in Summit Power International itself.
Singapore’s AAA sovereign credit rating created favorable conditions for Summit Power International to access international capital markets at costs unavailable in Bangladesh, where domestic borrowing rates average approximately 14%.
JERA Brings Expertise
JERA Co. acquired a 22% stake in Summit Power International for $330 million in October 2019. The transaction replaced IFC, IFC Emerging Asia Fund, and EMA Power as equity holders, though IFC continued as a lender to Summit projects.
JERA, a Japanese firm formed through a merger of Tokyo Electric Power and Chubu Electric Power’s fuel and thermal generation operations, brought substantial expertise in large-scale power generation and LNG infrastructure. The equity stake demonstrated international confidence in Bangladesh’s power sector and Summit Group’s capacity to execute large infrastructure projects meeting international standards.
General Electric Partnership Advances Technology
General Electric’s partnership with Summit Group extends across equity participation, technology supply, and long-term service agreements. The company holds a 20% equity stake in Summit Meghnaghat II Power Company Limited while providing comprehensive engineering, procurement, and construction services.
The Meghnaghat II project introduced Bangladesh’s first HA-class gas turbine, achieving 63.7% efficiency levels previously unavailable in the country’s power infrastructure. The 583-megawatt combined cycle facility reached commercial operations during April 2024.
GE’s involvement extends beyond initial construction through a 22-year maintenance and repair services agreement valued at approximately $390 million. Meghnaghat II’s construction employed over 1,100 workers.
Mitsubishi Corporation and LNG Infrastructure
Mitsubishi Corporation’s partnership with Summit Group focuses on LNG infrastructure development, including equity investment in Summit’s floating storage and regasification unit.
Mitsubishi holds a 25% equity stake in the LNG terminal operating company, bringing capital and technical expertise to develop Bangladesh’s second FSRU with 500 million cubic-feet-per-day regasification capacity.
Capital Cost Advantages Through International Markets
Summit Power International’s Singapore incorporation addressed prohibitive domestic capital costs.
The Singapore structure enabled Summit Group to achieve a 5% average cost of capital when Bangladesh’s interest rates ranged from 10-11%, according to Summit Group founder Muhammed Aziz Khan. This capital cost reduction translated directly into lower electricity tariffs for Bangladesh consumers while maintaining acceptable returns for international investors.
Summit Power International projects typically secured cost competitive long-term financing, distributing capital costs across extended timelines. These longer repayment periods contrast sharply with shorter-term domestic financing available in Bangladesh’s banking system.
Governance Framework Attracts Lenders
The Singapore structure attracted participation from development finance institutions and export credit agencies including International Finance Corporation, Asian Development Bank, Islamic Development Bank, DEG, FMO Netherlands, OPEC Fund for International Development, British International Investment, and Swiss export credit agency SERV.
These institutions imposed rigorous due diligence requirements that enhanced project quality.
“To be able to pay an invoice to a contractor, the lender’s technical advisor has to certify that the relevant milestones have been met before lenders are even willing to disburse funds to pay those contractors,” said Wu Yan Bin, chief financial officer at Summit Power International.
Summit Power International’s governance requirements include independent directors, audit committees, and compliance with International Financial Reporting Standards.
“One of the reasons that we did this structure—and IFC helped us to do this structure—is really to help us access the governance of Singapore, the laws of Singapore, and the financial markets of Singapore,” said Ayesha Khan.
Summit Group operates 11 power plants with combined capacity exceeding 2,000 MW, making it Bangladesh’s largest independent power producer. The partnerships enabled through Summit Power International’s Singapore structure demonstrate how emerging market infrastructure companies can access international capital markets while maintaining focus on domestic development objectives.
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