The U.S. government through its Agency for International Development USAID and Infrastructure Credit Guarantee Company Limited InfraCredit has signed a Declaration of Partnership to provide increased access to electricity to consumers in Port Harcourt.
Ekwi Ajide of our Abuja bureau reports that the thirteen billion naira co-guarantee for a fifteen year bond to be overseen by Stanbic Trust will allow GEL Utility Limited, a member of the Genesis Energy Group that develops, operates and provides both on- and off-grid power solutions, access long-term local currency financing at a reasonable interest rate and tenor.
According to USAID’s Mission Director Stephen Haykin, the partnership marks the first-ever risk sharing arrangement between USAID and InfraCredit and emphasizes both institutions’ dedication to supporting the development of Nigeria’s power sector adding that as a result, more consumers in Port Harcourt will have access to a reliable power supply.”
The transaction with GEL the first beneficiary of the co-guarantee arrangement between InfraCredit and USAID – demonstrates how private sector-led institutions can efficiently access the Nigerian debt capital market to fund the expansion of their power generating and distributing capacity.
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