Àrgentil's clean energy portfolio company FMGSL achieves first financial closing
Àrgentil Capital Management Limited has successfully achieved a financial closing for First Modular Gas Systems Limited (FMGSL), a clean energy company founded by the firm alongside Dharmattan Gas Facilities Limited. This allows FMGSL to draw down on equity and debt financing to develop its first gas processing plant in Anambra State, South Eastern Nigeria. The total project cost for this first plant is estimated to be $16 million.
The new investment in FMGSL is from the Africa Infra Plus Fund (AIPF), a NGN40.5 billion (about USD98.4 million) Special Situation Infrastructure Equity Fund, and the first naira based infra fund that can invest in debt or equity in Nigerian Infrastructure projects. The fund’s target sectors include: power, telecommunication, transportation and basic infrastructure in Nigeria. The investors in AIPF I and II comprise of pension funds, asset managers, sovereign funds, and insurance companies. AIPF is managed by Africa Plus Partners Nigeria Limited, a SEC licensed infrastructure-focused private equity firm.
Àrgentil co-founded FMGSL to become a leading midstream energy company that develops and operates distributed gas processing facilities in multiple locations.
Àrgentil has been keen to ensure the participation of local institutions in FMGSL’s financing as is the case via AIPF. This investment provides pension funds and other institutional local currency investors exposure to well-structured infrastructure assets. FMGSL will shortly execute definitive documents with a leading provider of credit enhancement that will further help attract local currency financing from the Nigerian capital market via guaranteed debt instruments. This use of blended finance is expected to be a key part of FMGSL’s funding strategy as it expands.
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