When evaluating investment opportunities in emerging markets, British investors often prioritize strong governance structures and transparency. Summit Power International (SPI), the largest independent power producer in Bangladesh, has positioned itself as a benchmark for governance excellence in South Asia through its strategic incorporation in Singapore.
How Summit Group Transformed Corporate Governance Through Singapore Base
Summit Group, founded by Muhammed Aziz Khan in 1985, took a transformative step in 2016 by establishing Summit Power International in Singapore. This move wasn’t merely a change of headquarters but a strategic decision to access more robust financial and governance frameworks.
“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, underscoring the significance of this structural shift.
The decision to relocate was driven by a clear understanding of what Bangladesh could and couldn’t offer. “What Bangladesh has is a lot of opportunities and a lot of growth. But what it lacks is governance, and what it lacks is a mature financial market, both of which are very much necessary to do long-term infrastructure projects, which is what we want to do for Bangladesh,” Ayesha Khan adds, highlighting the strategic rationale behind the move.
Aziz Khan Builds International Trust Through Transparent Operations
For Chairman Muhammed Aziz Khan, establishing transparent operations has been fundamental to building international credibility. The company has implemented robust corporate governance structures that meet international standards, making Summit an attractive partner for British and other foreign investors.
Summit’s governance model includes independent directors who sit on the company’s board, despite being primarily family-owned. This balance ensures that the business adheres to international best practices while maintaining its entrepreneurial roots.
“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,” states Ayesha Khan, emphasizing the professional approach to management.
Wu Yan Bin, SPI’s Chief Financial Officer, further explains that international investors, including those from the UK, benefit from the multiple layers of protection that come with Summit’s governance structure. “At the end of the day, whatever is available to be paid to the shareholders is at the bottom of the cash flow waterfall,” he says, describing the stringent financial controls in place.
Summit Group Creates Competitive Advantage Through International Partnerships
One of the most significant advantages of Summit’s governance structure is its ability to attract foreign partnerships that bolster its position in the energy sector. The company has established relationships with global giants like General Electric from the United States and Japan’s Jera Co., which acquired a 22% stake in SPI in 2019 for $330 million.
These partnerships wouldn’t have been possible without the governance structures Summit has put in place. “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,” explains Wu Yan Bin.
The company maintains that its Singapore incorporation allows it to access financing at more competitive rates, which translates into more affordable electricity for Bangladesh. “What it has helped us is access financings for our projects, which are very low cost, which in turn has helped us provide Bangladesh with electricity at the lowest cost,” says Ayesha Khan.
British Investors Find Reassurance in Summit Power International Framework
For British investors looking at opportunities in South Asia, Summit’s model offers reassurance through familiar compliance frameworks and governance standards. By operating under Singapore’s regulatory system, Summit adheres to international best practices in areas such as board independence, financial reporting, and transparency.
The company’s approach to corporate governance has been particularly valuable during periods of political transition in Bangladesh. By maintaining high standards of transparency and accountability, Summit has remained a stable investment proposition even when faced with changing political landscapes.
Summit has successfully combined Bangladesh’s growth potential with Singapore’s governance structures to create a unique value proposition for international investors. “We have the best of both worlds—the growth opportunities of Bangladesh, the close understanding of a Bangladeshi market by being company that is originally from Bangladesh, but also being an international multinational company having access to a matured financial market,” Ayesha Khan explains.
This model has allowed Summit to expand its operations while maintaining the trust of international partners and investors, setting a benchmark for how companies from emerging markets can structure themselves to attract global capital.
For British investors seeking opportunities in South Asia’s fast-growing markets, Summit Power International represents a blueprint for how strong governance can create confidence in regions that might otherwise be considered challenging investment environments.