In a significant move towards bolstering Bangladesh's renewable energy sector, the Asian Development Bank (ADB) has inked a financing deal worth $121.55 million with Dynamic Sun Energy Private Limited. The funding aims to facilitate the construction and operation of a 100MW grid-connected solar photovoltaic power plant in Pabna, Bangladesh.

This landmark project marks the country's maiden private sector utility-scale solar facility to receive backing from global financiers, as stated in an official press release.

The ADB took the lead in arranging, structuring, and syndicating the debt package, serving as the sole mandated lead arranger and bookrunner.

The financing arrangement comprises a $46.75 million loan from the ADB, a syndicated B-loan of $28.05 million from ILX Fund I—a Netherlands-based emerging market private credit fund with a focus on advancing the Sustainable Development Goals, with the ADB as the lender of record—and a syndicated parallel loan of $46.75 million from the Japan International Cooperation Agency (JICA).

Suzanne Gaboury, Director General of ADB's Private Sector Operations Department, emphasized the institution's commitment to promoting renewable energy in Bangladesh, acknowledging the challenges in securing long-term financing for such projects. She highlighted the pivotal role played by ADB in mobilizing financing for clean energy initiatives, thereby catalyzing further investment in critical sectors.

Expected to generate 193.5 gigawatt hours of electricity annually, the solar power plant is projected to avert approximately 93,654 tons of carbon dioxide emissions each year.

Shakhawat Hossain, Managing Director of PT, expressed his delight in securing financing for one of Bangladesh's largest private sector solar ventures, emphasizing PT's dedication to sustainability. The partnership with ADB underscores PT's commitment to sustainable growth, noted Hossain.

Dynamic Sun Energy (DSE) is under the ownership of Paramount Textile PLC (PT), a leading woven textile manufacturer in Bangladesh, which also operates multiple power plants.

PT specializes in producing high-quality yarn-dyed and printed woven fabrics, leveraging a diverse range of yarns, modern weaving technologies, and printing methods. Publicly listed on the Dhaka and Chittagong stock exchanges in 2013, PT has made significant strides in promoting sustainable practices.

Established in 1966 and owned by 68 members, ADB remains steadfast in its pursuit of fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific region, with a continued focus on eradicating extreme poverty.