ADB Finances Bangladesh’s First 100 MW Private Sector Solar Project with $121.55 Million Package in Pabna

The Asian Development Bank (ADB) has taken a significant step in advancing renewable energy in Bangladesh by signing a $121.55 million financing package with Dynamic Sun Energy Private Limited. This collaboration will lead to the construction of a 100-megawatt (MW) grid-connected solar photovoltaic power plant in Pabna, marking the first utility-scale solar facility in the country’s private sector supported by international financiers.

ADB, serving as the sole mandated lead arranger and bookrunner, orchestrated the comprehensive financing package. It includes a $46.75 million loan directly from ADB, a $28.05 million syndicated B-loan from ILX Fund I—an Amsterdam-based private credit fund focused on the Sustainable Development Goals—and a $46.75 million syndicated parallel loan from the Japan International Cooperation Agency.

Suzanne Gaboury, Director General of ADB’s Private Sector Operations Department, highlighted the challenge of securing long-term financing for such projects in Bangladesh and expressed enthusiasm about ADB’s pivotal role in mobilizing funds for clean energy development. This initiative is expected to significantly enhance local energy production, generating approximately 193.5 gigawatt-hours of electricity annually while preventing 93,654 tons of carbon dioxide emissions each year.

Shakhawat Hossain, Managing Director of Dynamic Sun Energy, expressed gratitude for the secured financing, noting it as one of the largest private sector solar projects in Bangladesh to date. He emphasized the importance of the partnership with ADB in reinforcing the company’s commitment to sustainable practices.

Dynamic Sun Energy is owned by Paramount Textile PLC (PT), a major player in Bangladesh’s textile industry, known for its high-quality woven fabrics and technological prowess in manufacturing. PT, which also manages several power plants, was listed on the Dhaka and Chittagong stock exchanges in 2013.

This venture aligns with ADB’s broader objectives of fostering sustainable and inclusive growth in Asia and the Pacific, while continuing its mission to eradicate extreme poverty in the region.