55.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management	3.90
Guarantee
Loan	40.15
Equity	10.95

* These investment figures are indicative

Upon its development, the Project is expected to be the first LNG import terminal in Bangladesh. The country has been experiencing natural gas shortages due to growing energy demand and depletion of natural gas reserves. Imported LNG is expected to supplement domestic energy sources and improve access to gas for the power sector, industries, and domestic consumers; this is critical for economic growth and public welfare. At its guaranteed capacity, the Project can regasify sufficient LNG for 3,000 megawatts ("MW") of natural gas fired power generation. Furthermore, imported LNG will reduce and displace the use of liquid fuels, which typically have a greater polluting effect on the environment. As the first private midstream infrastructure investment in Bangladesh, the Project is expected to have a strong demonstration effect and its successful development is likely to facilitate further foreign investments in the country's infrastructure sectors.

1.Project Development: The Project was bid out in 2011 and the Excelerate-led consortium was selected as the preferred bidder in 2012. IFC InfraVentures' joined the Project in 2013 and helped facilitate the process between Excelerate and the Government by allowing each side to gain increased comfort with the new venture. For Excelerate, this meant explaining the business practices and risks involved for investing and doing business in Bangladesh and, for the Government, IFC helped explain the customary terms for international project financing for these types of offshore LNG projects. IFC played a key role during the negotiations and execution of the commercial contracts with Petrobangla. 2.Bankable Project Documents: This is Bangladesh's first LNG project. IFC played a key role in the concession agreement discussions to ensure its bankability for international lenders by leveraging IFC experience financing power projects in Bangladesh and financing LNG regasification terminals in other emerging markets. 3.Political Risk Mitigation: This Project is Excelerate's first project in Bangladesh and its first long-term fixed infrastructure investment in an emerging market. IFC's presence provides a political risk mitigation role and gives comfort to Excelerate to own and operate the fixed infrastructure as well as operate the FSRU in Bangladesh. 4.Providing and Arranging Financing: Excelerate has not previously raised debt on a long-term project finance basis. IFC's experience, structuring and involvement will help other financiers get comfortable with the providing long-term financing in a sector where the experience among international financiers for emerging markets is limited. 5.Environmental & Social Risk Mitigation: IFC plays a key role in helping mitigate E&S impacts and working towards a bankable ESIA study. IFC has played a key role in assisting Excelerate and the Project Company and its consultants prepare the ESIA and an Environmental Social Action Plan ("ESAP") consistent with good international industry practice.

This is a Category B project as the proposed investment is expected to have limited environmental and social impacts, which are site-specific, temporary and none of which is expected to be significant.  The LNG shipping, transfer and floating regasification sector is considered to have an excellent safety performance record, with no fatalities directly attributable to the cargo or material containment breaches having occurred in the sector’s 57 year operating history.

The key environmental, social, health and safety risks associated with this proposed investment include the company’s management capacity to develop a floating LNG regasification terminal, including how environmental and social risks are taken into account in planning, design, construction and operation.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.