Sembcorp gets a shot in the arm from International Finance Corporation

The funding is for its power plant project in Bangladesh.

Sembcorp Industries is looking to end the year with a bang as it secured a project financing for its Bangladesh power plant from International Finance Corporation.

In a statement, Sembcorp revealed that IFC, along with Singapore-based infrastructure project financing firm, Clifford Capital and CDC Group, the UK government’s development finance institution, have a share each of US$103 million in the total project finance debt.

The construction work on the greenfield dual-fuel combined-cycle power plant in the Sirajganj district of Bangladesh has already commenced with the signing of financing agreements and targeted loan drawdown.

Sembcorp Industries president and CEO Tang Kin Fei said with the support of IFC, Clifford Capital and CDC, the group has strengthened its commitment towards supporting Bangladesh’s vision for continued growth and development.

"Sembcorp’s Sirajganj power plant will allow us to provide cost-effective and reliable energy solutions to the country over a period of 22.5 years upon its completion," he stated.

The power plant will be developed by Sembcorp North-West Power Company, a joint venture between Sembcorp Utilities and Bangladesh's state-owned North-West Power Generation Company. The project will be the second largest independent power plant in the country, and represents the largest foreign direct investment into this sector in recent years. The success of the project will demonstrate the profitability and sustainability of public and private-sector partnerships in Bangladesh’s power sector to international players and help attract additional capital to the sector.