Summit Group
Local power giant Summit Group will mobilise Tk 15 billion from capital market by issuing zero coupon bond for installation of 300-450MW Meghnaghat phase-11 combined cycle power plant.
An agreement in this regard was signed at a city hotel yesterday between Summit Industrial and Mercantile Corporation Limited, a sister concern of Summit group, Janata Bank Limited and Industrial and Infrastructure Development Finance Company (IIDC).
Prime Minister’s economic affairs adviser Mosiur Rahman and Power and Energy adviser Dr Tawfiq-e-Elahi Chowdhury and Summit Group chairman Md Aziz Khan were present at the signing ceremony.
Summit Industrial and Mercantile Corporation, plans to offload 21.5 million zero coupon bonds with 10-year tenure to raise Tk 15 billion from the capital market.
The company will float 12 per cent convertible zero coupon bond at an offered price of Tk 5,583 with face value of Tk 8000.
"The company will require US$300 to install the 300-450 MW Meghnaghat phase-II combined cycle dual fuel power plant," Summit Industrial and Mercantile Corporation Ltd executive Tarequl Rashid said.
The Summit Group is going to float zero coupon bond at a time when the Ministry of Finance recommended issuing rights share instead of zero coupon bond to encourage investors in the share market, sources said.
Last year, the Summit Group has emerged as the lowest bidder in the Meghnaghat phase-II combined cycle dual fuel power plant project.
The joint venture of Summit Industrial and Mercantile Corporation Ltd and GE Energy LCC of the United States quoted a readout power tariff at 3.9874 US cents per kilowatt hour electricity while its lone competitor Malaysian Powertek Berhad quoted it at 4.6024 US cents.
The private sponsors will execute both the schemes on build-own-operate (BOO) basis and the government will purchase electricity from the projects at the quoted prices for next 22 years.
Summit, so far, won a number of power plant projects with total capacity of 1046 MW. It has now been operating a number of plants having total capacity of 330 MW