Nigerian infrastructure debt fund in rural electrification deal
Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF), the first listed infrastructure debt fund in Nigeria and Africa, has announced the successful financial close for the construction of 22 mini-grids being developed by Havenhill under the Nigeria Electrification Project.
With this development, NIDF will provide Havenhill long-term financing of N1.8 billion (c. $4.6 million) to part-finance the roll out of these mini-grids, that would connect 70,000 people along with other establishments in the host communities to clean, reliable energy supply.
Recent data obtained from National Bureau of Statistics revealed that access to reliable electricity in Nigeria is relatively low with a rural electrification rate still hovering around 39%.
In 2019, the International Monetary Fund (IMF) also estimated that a lack of access to reliable electricity costs Nigeria an estimated $29 billion a year.
Havenhill is addressing these challenges by deploying smart solar mini-grids to commercially viable rural communities across the country.
“NIDF prides itself in being the leader in financing of clean energy and energy access projects in Nigeria and thus contribute to the achievement of UN’s Sustainable Development Goals. In multiple projects such as Havenhill, our unitholders can see their capital in action and generating not only financial returns but also making a strong, .positive impact on the daily lives of their fellow citizens,” said CEO of NIDF, Anshul Rai.
He disclosed that financing of the project will be funded from the fund’s recently concluded series 7 capital raise, which also involved the participation of African Development Bank (AfDB).
“With the support of AfDB, NIDF is also implementing a comprehensive environmental and social management system for the fund and also supporting its borrowers to adopt the international best practices in the area of environmental and social sustainability,” he added.
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