GuarantCo’s landmark guarantee repaid 10 years ahead of schedule by Technaf Solartech for Bangladesh’s pioneering solar project

  • Date written
  • June, 2025

GuarantCo, part of the Private Infrastructure Development Group (PIDG), has secured early repayment of its innovative guarantee for Technaf Solartech Energy Limited (TSEL), which successfully initiated Bangladesh’s first utility-scale, grid-connected solar project in 2019. Due to the credit uplifts and smooth operational track record so far, a local bank, supported by the World Bank’s IPFF facility, has taken over the financing, retiring a 15-year loan in just five years.

GuarantCo’s landmark guarantee repaid 10 years ahead of schedule by Technaf Solartech for Bangladesh’s pioneering solar project

This milestone marks a significant turning point for Bangladesh’s energy sector, underscoring the success story of utility-scale solar projects and paving the way for similar initiatives in the future. The Technaf solar plant, developed by Joules Power Limited in Cox’s Bazar, delivers up to eighty per cent of the region’s peak electricity demand, serving circa 112,000 people and powering homes, schools, offices and other businesses.

GuarantCo’s $13.5 million dual-currency partial guarantee, paired with a liquidity extension guarantee, mitigated payment and liquidity risks for Standard Chartered and other lender banks of Bangladesh, ensuring the project’s success, credit uplift and unlocking new financing avenues for TSEL. From a pioneering venture to a proven success, this achievement underscores GuarantCo’s pivotal role in advancing sustainable infrastructure across Bangladesh.

Nishant Kumar, Managing Director Asia Investments, at GuarantCo, said:

“This innovative structure set an important precedent for the banking sector in Bangladesh by enabling long-term sustainable infrastructure financing in both hard and local currencies. It has succeeded in demonstrating to the market what could be done and given local players the confidence to offer similar deals. We are proud to have supported this pioneering project, which also led to increased contribution of renewables in the national energy mix to support Bangladesh in its energy transition strategy.”

Mr. Mohammad Abdul Moyeen, Managing Director at Technaf Solartech Energy, said:

“The guarantee from GuarantCo was pivotal in securing long-term, low-cost foreign funding for a pioneering solar power project in Bangladesh. It paved the way for an innovative financing solution that can help overcome numerous challenges faced in the power sector and beyond. We are grateful to have the continued support of GuarantCo, and we look forward to the prospect of engaging with them for future endeavours.”

NOTES TO EDITORS

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, and Global Affairs Canada plus France through a stand-by facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabled USD 6.2 billion of total investment and USD 5.2 billion of private sector investment, giving 45.2 million people improved access to infrastructure and creating around 229,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development www.guarantco.com

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and south-east Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity and urgency.
PIDG offers Technical Assistance for upstream, early-stage activities and concessional capital; its project development arm – which includes InfraCo – invests in early-stage project development and project and corporate equity. PIDG credit solutions include EAAIF (the Emerging Africa and Asia Infrastructure Fund), one of the first and more successful blended debt fund in low-income markets; GuarantCo, its guarantee arm that provides credit enhancement and local currency solutions to de-risk projects; and a growing portfolio of local credit enhancement facilities, which unlocks domestic institutional capital for infrastructure financing.
Since 2002, PIDG has supported 233 infrastructure projects to financial close, which provided an estimated 228 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia, Sweden, Global Affairs Canada and Germany. pidg.org

About Technaf Solartech Energy

Technaf Solartech Energy Limited (TSEL) is a solar power generation company based in Teknaf, Bangladesh, recognised for developing the country’s first utility-scale solar power plant. It’s a subsidiary of Joules Power Limited and contributes significantly to Bangladesh’s renewable energy goals. The 20 MW power plant, located on the shores of the Naf River, is a significant step in Bangladesh’s transition towards clean energy.