When Summit Power International (SPI) incorporated in Singapore in 2016, the move represented a strategic pivot that would dramatically enhance the company’s ability to finance power projects across Bangladesh. Founded by Muhammed Aziz Khan, Summit Group has leveraged Singapore’s robust financial architecture and governance standards to secure competitive financing rates and forge partnerships with global industry leaders.
How Summit Group Transformed Through Singapore Incorporation
“One of the most important things that define us is the fact that we are a Singapore company based out of Singapore, owning assets in Bangladesh,” explains Ayesha Khan, Managing Director and Chief Executive Officer at SPI. “One of the reasons that we did this structure — and IFC helped us to do this structure — is really to help us access the governance of Singapore, the laws of Singapore, and the financial markets of Singapore.”
The decision to relocate SPI’s headquarters came through a partnership with the International Finance Corporation (IFC), which invested in Summit in 2016 through an equity-like structure. This arrangement helped bring Summit to Singapore, creating a financial foundation that allowed the Singapore structure to reinvest back into Bangladesh projects.
Wu Yan Bin, Chief Financial Officer at SPI, describes the strategic vision: “The idea is to set up Summit Power International as a platform for attracting both investments and funding to new projects in Bangladesh, as well as to grow this platform to look at projects outside Bangladesh.”
Major Partners Join Aziz Khan Vision Through Singapore Platform
This vision has materialized through several high-profile partnerships. In 2019, Japanese power giant Jera purchased a 22% stake in SPI, providing substantial foreign direct investment. This partnership would have been considerably more difficult without the incorporation of Singapore.
“If SPI were to remain completely within Bangladesh, it would have been more challenging for Jera to obtain their approvals to invest directly into Bangladesh,” notes Wu Yan Bin. “The Summit Power International platform is important in convincing international world-class corporations like Jera to invest in Bangladesh projects.”
The company has also established strong ties with General Electric (GE) of the United States, which partnered with SPI on power plant projects. Similarly, Japan’s Mitsubishi Corporation collaborated with SPI to develop a liquid natural gas floating storage regasification unit.
Summit Group Corporate Governance Attracts International Investment
Singapore’s reputation for strong corporate governance has played a crucial role in attracting these partnerships. The city-state’s AAA credit rating provides comfort to international investors looking at projects in regions with lower sovereign ratings. Operating within Singapore’s well-established regulatory framework signals to potential partners that SPI adheres to international best practices in corporate governance and financial reporting.
SPI’s board structure reflects this commitment to governance excellence. Despite being predominantly family-owned, the company maintains independent directors on its board alongside representatives from investor Jera.
“We have moved to Singapore to be able to provide better service to our customers. We have moved to Singapore to work under the shelter of better governance, corporate governance,” explains Ayesha Khan. “The business is not run as a family-run sole proprietorship. The business is run as a very well-governed, well-structured, well-reported business.”
Aziz Khan Legacy Expands Through International Financial Connections
The incorporation in Singapore has allowed Muhammed Aziz Khan to build upon his legacy of bringing electricity to Bangladesh by creating a corporate structure that can attract significant international investment. According to Ayesha Khan, this strategic positioning gives Summit a unique advantage:
“We have the best of both worlds—the growth opportunities of Bangladesh, the close understanding of a Bangladeshi market by being a company that is originally from Bangladesh, but also being an international company having access to a mature financial market.”
This balanced approach has allowed Summit Group to fulfill its mission of providing affordable energy infrastructure while also satisfying the requirements of international investors who demand transparency, compliance, and sound corporate governance.
