InfraCredit, an ‘AAA’-rated specialised infrastructure credit guarantee institution has announced Darway Coast Nigeria Limited’s green debt issue of £10 million (N5.1 billion) and targets energising 7,711 households.
It is an initial transaction under InfraCredit’s Clean Energy Funding Programme with the £10m Climate Finance Blending Facility funded by the United Kingdom Foreign, Commonwealth and Development Office, InfraCredit said in a statement issued Thursday.
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This initial transaction enables domestic institutional investors to directly invest in a 7-year fixed rate local currency debt financing for the project, making it the first-ever certified blended local currency green debt issue for a solar mini-grid project in Nigeria.
The financing will be utilised to construct isolated solar mini-grids with a total capacity of 526.1 kilowatts (kW) in six communities without grid access within Rivers and Abia states.
The project on completion will electrify up to 7,711 unserved households and small businesses, create up to 497 temporary and permanent jobs and avoid 4,856 tons of greenhouse gas emissions whilst enhancing access to renewable energy for productive uses.
The facility will be increased through funding by other development partners to co-finance a pre-assessed initial pipeline of over $128m that will mobilise at least N26.8bn (or $64m) of domestic institutional capital.
These projects will generate 22.7 megawatts (MW) of off-grid renewable energy projects in 580 unserved communities across 32 states in Nigeria that will connect 172,535 unserved households and small businesses, create 6,977 jobs and reduce 394,403 tonnes of GHG emissions.
The green debt was verified by Agusto & Co as a green verifier, and the guaranteed senior debt was rated “AAA” by Global Credit Ratings.
