Nigerian Sovereign fund, Shiroro Power plant on N8.5 billion deal to boost power generation
A subsidiary of the Nigeria Sovereign Investment Authority (NSIA), InfraCredit, has opened a N8.5 billion 600MW Shiroro Hydro Electric Infrastructure Green Bond to boost the plant’s power generation.
Launched in partnership with GuarantCo, KfW Development Bank and Africa Finance Corporation, the deal is to provide the North South Power Company Limited’s (NSP) with N8.5 billion 15-year 15.60 per cent Series 1 Guaranteed Fixed Rate Senior Green Infrastructure Bonds due back in 2034.
In a statement, the Executive Vice Chairman and CEO of North South Power Company Limited, Engr. (Dr) Olubunmi Peters noted that the success of the bond issuance is a significant milestone in the company’s long-term corporate strategy, demonstrating its market leadership, innovation and commitment to the highest standards of environmental, social and corporate governance.
“With the completion of the Series 1 Guaranteed Green Infrastructure Bonds issuance, the Company has established a long-envisioned link with a more sustainable long-term, local currency financing required to implement its ambitious strategic power generation expansion plan through the capital markets.”
NSP currently generates, on the average, 8% of Nigeria’s power providing power to millions of Nigerians and aims to be the leading power company in Sub-Saharan Africa by safely providing affordable, reliable, and sustainable power to its customer base. The medium-term objective of the Company is to contribute more than 10% of Nigeria’s power generation output by 2020.
“Shiroro Hydro is an extremely essential and resilient asset with a 30-year consistent production history. North South Power, with the acquisition of a 30-year concession in 2013, has demonstrated the competence and ability to deliver on its business targets from restoring capacity target to 600MWwhich is a 45 per cent increase in its power generation.”
Fund Manager, African Local Currency Bond Fund, James Doree remarked: “The first corporate green bond in Nigeria, issued by North South Power and supported by InfraCredit, sets a benchmark for the domestic and regional capital market. North South Power’s ongoing investments in the Shiroro power station since 2013 have restored nameplate capacity with minimal environmental impact and NSP is now able to generate more than 2,000 GWh on a yearly basis.”
United Capital Plc acted as Lead Issuing House/Financial Adviser, while Stanbic IBTC Capital Limited, Vetiva Capital Management Limited and Zenith Capital Limited were Joint Issuing Houses to the Bond Issuance.