This document summarizes the financing details of a solar project for Afil group consisting of 4 entities with a total capacity of 3725.425 kWp. It shows the project costs, loan terms including a 6 month grace period at 9% interest then 4.5 years at 5% green financing rate. The OMERA financing proposal is compared which offers a 5% interest rate over 5 years requiring 25% equity from Afil group. Including the opportunity cost of this equity invested elsewhere, the total cost to Afil group is estimated to be BDT 238.8 million under OMERA financing versus BDT 209.9 million with commercial and green financing, making OMERA financing more expensive by almost BDT 28.8 million

1. Solargao OMERA Solar
Entity Capacity (kWp) Total Actual Project cost (BDT) Total Actual Project cost (BDT)
Afil Jute 1454.75 70,264,425 77,872,768
Afil Auto 1365.05 66,423,333 73,071,127
Afil Layer 359.375 17,487,188 19,237,344
Afil paper 546.25 26,580,525 29,240,763
Total 3725.425 180,755,471 199,422,000
Assumption Remarks
Loan Tenure (commercial 9%) 5 Years 6 Months Grace Period
Loan Tenure (Green Fund 5%) 4.5 Years Remaining tenure after 6 months
Commercial Lending
EMI for commercial lending during 1st 6 months (BDT) 3,752,186
Interest Payment during 6 months (BDT per month) 1,355,666
Total interest in 6 months 7,751,790
Green Finance Lending
EMI during 4.5 years (BDT) 3,744,947
payment during 4.5 Years (BDT) 202,227,114
Total Cost on Afil group 5 years , BDT 209,978,904
OMERA Financing
Loan Interest rate (%) 5%
Tenure , Years 5
Loan part (%) 75%
Afil Group Equity (%) 25%
Loan amount, BDT 149,566,500
Afil Group Equity, BDT 49,855,500
Expected return on equity investment (%), FDR 7%
Tenure , Years 10
Opportunity Cost against equity, BDT 69,463,755
EMI for loan , monthly BDT 2,822,504
Cost on Afil group 5 years, BDT 169,350,262
Total Cost on Afil group 5 years , BDT 238,814,017
Difference 28,835,113
6 months will be based on commercial lending @ 9 % and during this period only interest will be
paid. Remaining 4.5 yrs, EMI is based on 5% interest under green finance
For the 5 years total payment to be done by Afil group is calculated at 5% for the loan amount.
However, 25% equity needs to be injected by Afil group. If Afil group didn’t require to invest any
equity i.e. BDT 4.98 crore could be invested elsewhere and a return would be available. Hence,
opportunity cost needs to be calculated as well. Safest investment would be FDR , which will
provide 7% return for atleast 10 years. Hence it is considered and added to the payment of the
loan payment
Omera financing is expensive by almost 3 crore