Ashurst represents Unique Meghnaghat Power on the US$ 463 million project financing of a gas fired combined cycle power plant in Bangladesh
29 December 2023
Global law firm Ashurst advised Unique Meghnaghat Power Limited as Borrower and the Sponsors, Nebras Power Q.S.C., Strategic Finance Limited and Unique Hotels and Resorts in relation to the development and financing of a 584MW combined cycle power plant in Bangladesh.
The project is under construction in the Meghnaghat region of Bangladesh and will operate on Gas/Re-gasified Liquefied Natural Gas (RLNG).
Financial close for the US$463 million long-term project financing package was achieved on 19 December 2023.
This is the largest IPP project financing to have closed in the past few years in Bangladesh. This is particularly remarkable given this has been achieved despite the significant foreign currency shortages in Bangladesh in recent years.
The multi-sourced financing package includes an ECA covered tranche (with cover from SERV of Switzerland) as well as three DFI tranches, from AIIB, DEG and OPEC Fund. The initial proceeds of the financing will be used to refinance short-term construction financing facilities and will provide the borrower with long-term and competitive debt financing.
Our lawyers advised on all aspects of the project development and financing, including on developing a bespoke refinancing solution for the project.
This is also the first IPP investment by Nebras in Bangladesh.
Lead partner Jean-Louis Neves Mandelli commented, "We are delighted to have supported Nebras, Strategic Finance Limited and Unique Hotels and Resorts on this landmark transaction, and to continue to build our market leading track record delivering financial close on major Bangladeshi IPPs."
