Confidence Power and Energy PLC plans to raise Tk400 crore through an initial public offering to finance two solar power projects and repay part of its existing debt, marking a shift towards renewable energy for a company operating four conventional power plants.
The Confidence Group company outlined its fundraising and expansion plans at an investor roadshow in Dhaka on Sunday, seeking capital to develop two grid-connected solar power projects with a combined capacity of 200 megawatts.
Of the proposed offering, Tk230 crore would finance a 100MW solar project in northern Cox’s Bazar, while Tk102 crore would go towards another 100MW project in Mongla, Bagerhat.
The company plans to use Tk60 crore to repay existing loans and Tk8 crore to cover estimated share offering expenses.
The allocation means 83 per cent of the proposed proceeds would go towards solar expansion, with the remainder earmarked for debt reduction and fundraising costs.
Confidence Power said it had signed 20-year power supply agreements with the Bangladesh Power Development Board for both projects. The agreements will take effect from the respective commercial operation dates, subject to contractual terms and project implementation requirements.
The long-term agreements are expected to support the projects’ operations as the company diversifies its electricity generation portfolio.
Confidence Power currently operates four power plants, including three in Bogura and Rangpur in northern Bangladesh and one in Chattogram.
The proposed solar investments would expand the company’s presence in renewable energy alongside its existing power generation operations. It is also exploring further expansion opportunities in the sector.
The company presented its business model, financial performance, financing arrangements and growth strategy on Sunday to eligible investors at the roadshow held at Radisson Blu Dhaka Water Garden.
Its Chairman Imran Karim, Director Rezaul Karim and Managing Director Khalid Islam attended the event.
UCB Investment Managing Director and CEO Tanjim Alamgir joined virtually. The investment bank is managing the proposed public offering, while Prime Bank Investment PLC is serving as registrar.
Representatives of the Dhaka Stock Exchange, Chittagong Stock Exchange, merchant banks and audit firms also attended.
Confidence Power said it would pursue the fundraising and expansion plans while maintaining regulatory compliance, corporate governance and prudent capital allocation.
