May, 15, 2019
LVL Energy Fund PLC in a disclosure to Colombo Stock Exchange (CSE) recently said that on 8th May 2019 the company remitted to Bangladesh US $ 8 million in respect of its investments in Feni Lanka Power Ltd (FLPL) incorporated in Bangladesh that is constructing a 114 MW thermal power plant in Feni, Bangladesh on BOO (Build, Own, Operate) basis.
Disclosure further said that the promoter of the project is Lakdhanavi Limited and that company's shareholding in FLPL will be approximately 26%.
LVL Energy Fund PLC in another disclosure to CSE said that Rs. 375 each totaling to Rs. 750 million unsecured loans were obtained from company’s related parties DFCC Bank and HNB Bank at Average Weighted Prime Lending Rate (AWPLR) plus 1.50% per annum which is payable on a monthly basis on repayment term of anytime within 2 years for part financing the investment in Feni Lanka Power Ltd in Bangladesh. The filing said that the basis on which the terms were arrived after receiving proposals from 4 banks.
The same disclosure further added that the aggregate value of the related party transactions with DFCC amounts to Rs. 485 million and HNB amounts to Rs. 375 million totaling to Rs. 860 million as at 13th May 2019.
“The project is expected to commence commercial operation within 5 months in September 2019. FLPL has entered into a 15 year power purchase agreement with Bangladesh Power Development Bard in respect of the project” the first filing said.
The statement also said that the company has already invested US $ 8 million in two thermal power projects of the capacity of 52 MW each in Bangladesh promoted by Lakdhanavi Ltd.
“Along with the proposed investment the total investment by the Company in the power sector in Bangladesh will increase to US $ 16 million” the first filing added.
Reporting by Devendra Francis