The Asian Development Bank (ADB) has signed a $121.55 million financing package with Dynamic Sun Energy (DSE) Private Ltd to build and operate a 100-megawatt (MW) grid-connected solar photovoltaic power plant in Pabna, a northwest district in Bangladesh.

The plant is the country's first private sector utility-scale solar facility to secure support from global financiers, said the Manila-based multilateral lender today in a statement.

"ADB arranged, structured, and syndicated the debt package as the sole mandated lead arranger and book-runner," it said.

The financing package comprises a $46.75 million loan from ADB, a syndicated loan of $28.05 million from ILX Fund I, an Amsterdam-based emerging market private credit fund focused on supporting the Sustainable Development Goals with ADB as lender of record and a syndicated parallel loan of $46.75 million from the Japan International Cooperation Agency.

"As Asia's climate bank, ADB welcomes the opportunity to support renewable energy in Bangladesh, where obtaining long-term financing for such projects is a challenge," said ADB Private Sector Operations Department Director General Suzanne Gaboury.

"This partnership exemplifies our lead role in mobilising financing for clean energy facilities and stimulating further investment in sectors where it's needed the most."

The solar power plant will generate 193.5 gigawatt-hours of electricity annually and avoid 93,654 tonnes of carbon dioxide emissions annually.

"We are delighted to secure financing for one of the largest private sector solar projects in Bangladesh to date, with the support of international lenders led by ADB," said Paramount Textile PLC (PT) Managing Director Shakhawat Hossain.

In a filing to the Dhaka Stock Exchange on April 2022, Paramount Textile said it would form a joint venture with Dynamic Sun Energy Private Ltd to establish a 100-megawatt solar power plant in Pabna sadar.