Completed Commercial AidData Chinese Aid

Bank of China contributes to $105 million syndicated loan for 220MW Bhola Gas-Fired Power Plant Acquisition Project

$16M USD

Funder	Bank of China (BOC)
Recipient Organization	Actis Ambergen 2 Limited
Country	Bangladesh
Start Date	May 29, 2022
End Date	Sep 08, 2030
Duration	3,024 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`104951`

Grant Description

Bank of China contribution to USD 105 million syndicated loan for 220MW Bhola Gas-Fired Power Plant Acquisition Project On May 29, 2022, Actis Ambergen 2 Limited -- a Mauritius-incorporated special purpose vehicle and wholly-owned subsidiary of Bridgin Power Private Limited, which is itself a subsidiary of Actis (UK-based investor) — signed a $105 million syndicated loan agreement with 6 banks (Sumitomo Mitsui Banking Corporation, Bank of China, DBS Bank, ING Bank, Mizuho Bank, and Societe Generale) for the 220MW Bhola Gas-Fired Power Plant Acquisition Project.

Bank of China reportedly contributed $16 million to the syndicate.

📋 Loan / Grant Terms

💰 Loan Amountcarried an 18-year maturity and an unknown interest rate

📅 Maturity18 years

Non-commercial risks were covered through a political guarantee provided by the Multilateral Investment Guarantee Agency (MIGA).

The borrower was expected to use the proceeds of the loan to facilitate Bridgin Power Private Limited's acquisition a 49% ownership stake in Nutan Bidyut (Bangladesh) Ltd — the special purpose vehicle (SPV) that is responsible for the 220MW Bhola Gas-Fired Power Plant and that holds a 22-year power purchase agreement (PPA) with Bangladesh Power Development Board — from Shapoorji-Pallonji Group (SP Group).

The acquisition of the 220MW Bhola Gas-Fired Power Plant, which is located in Bhola, Barisal (exact locational coordinates: 22.47929, 90.71096), was completed in July 2022.

📋 Staff Comments

1. Shearman & Sterling advised the lenders. Clifford Chance advised Actis. See https://chambers.com/articles/refinancing-of-bhola-ipp-in-bangladesh and https://law.asia/clifford-chance-shearman-bangladesh-power-plant-buy/ and https://www.cliffordchance.com/news/news/2022/07/clifford-chance-advises-actis-on-landmark-acquisition-and-refina.html2. On June 7, 2022, the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, issued guarantees totaling $407 million to cover the acquisition and refinancing of Nutan Bidyut (Bangladesh) Limited, the project enterprise that owns and operates the Bhola-2 220MW, dual fuel (gas/HSD) combined cycle power plant. The MIGA guarantees covers equity investments by Actis against the risk of breach of contract-arbitral award default for a period of up to 20-years. The MIGA guarantees will covers the non-shareholder loans made by a group of international banks “represented by Mizuho Bank, Ltd.” for up to 18-years against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract-arbitral award default. See https://www.miga.org/project/bhola-2-220mw-combined-cycle-power-plant-1 and https://documents1.worldbank.org/curated/en/633631650555609238/pdf/Minutes-of-a-Meeting-of-the-Board-of-Executive-Directors-of-the-Bank-on-March-7-2022-and-Record-of-Approvals-March-2-thru-7.pdf3. Under the deal, existing project financing provided by Asian Infrastructure Investment Bank, Islamic Development Bank and IDCOL Bangladesh was replaced by commercial bank debt provided by a syndicate of Sumitomo Mitsui Banking Corporation, ING Bank NV, DBS Bank Ltd, Bank of China Limited, Mizuho Bank Limited and Société Générale. The IPP refinancing in Bangladesh was achieved through a bespoke refinancing and settlement structure integrated with the acquisition process.

📚 Sources & References

Acquisition of 49% in Bhola Gas-Fired Power Plant (220MW)
Actis launches power generation business dedicated to delivering an equitable energy transition in Southeast Asia
Bridgin Power acquires 49% stakes in Indian power plant situated in Bhola
Refinancing of Bhola IPP in Bangladesh
Clifford Chance
Shearman in Bangladesh power plant buy
Bangladesh Bhola-2 220MW Combined Cycle Power Plant
Minutes of a Meeting of the Board of Executive Directors of the Bank via WebEx on March 7, 2022, at 4:00 p.m.
IGA Facilitates Actis Acquisition of Bhola Power Plant in Bangladesh
Bhola 225 MW (NBBL) Dual Fuel Power Plant Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.