Bangladesh’s Midland Power Company has signed a US$31mn financing agreement with Standard Chartered for the construction of a gas-fired power plant.

A StanChart spokesperson tells GTR that the bank will facilitate the capital expenditure of the 51MW plant project in Ashuganj via a structured trade/letter of credit facility for up to US$31mn.

“The eventual payment of US$21m will come from a US$21m term loan facility from the bank. The remaining US$10m will come from sponsors of Midland Power as equity in the project,” the spokesperson adds.

Midland Power is a joint venture between Bangladeshi companies Viyellatex Group and Youth Group. The firms came together to implement the natural gas-based plant under the government’s Independent Power Producer policy, whereby the Bangladesh Power Development Board buys power under the relevant power purchase agreement. Bakharabad Gas Distribution Company will supply gas to the plant and the main engine for the plant will be coming from Rolls Royce in Norway.

Abrar Anwar, StanChart managing director wholesale banking, says: “We are delighted to be able to deploy our global capabilities to raise international financing for projects in Bangladesh. As the oldest bank in this country, we remain committed to be an integral force in the development of not only the financial sector, but also of the Bangladesh economy as a whole.”