JERA Invests in Bangladesh's Largest Independent Power Producer
JERA Co., Inc. (“JERA”) has agreed to acquire 22% of the outstanding shares of Summit Power International Limited ("Summit Power"), a power generation company in Bangladesh.
Summit Power is a power generation company affiliated with the Summit Group, a major conglomerate in Bangladesh. The largest independent power producer in the country, it owns and operates power generation facilities that produce approximately 1.8 GW, representing about 12 % of the country's capacity. The company is currently constructing power generation facilities with a capacity of approximately 590 MW and, with several new projects also being planned, significant growth is expected in the future.
Because the demand for electricity in Bangladesh is expected to grow rapidly with steady economic growth, JERA has positioned it as a priority country for investment, participating in a power generation project in Bangladesh for the first time in September of this year.
The new investment was made in accordance with the memorandum of understanding on the development of energy infrastructure projects in Bangladesh that was concluded between JERA and Summit Power in May 2019. By capitalizing on the strong business foundation established through JERA's investment in Summit Power, Bangladesh's largest independent power producer, JERA will strive to explore business opportunities in the country and further expand its earnings base.
JERA plans to send executives and employees to Summit Power. As a Summit Power shareholder, JERA will strive to increase the company’s corporate value through the efficient construction and operation of its power generation facilities, thereby contributing to Bangladesh’s sustainable economic growth.
Appendix: Outline of Summit Power