InfraCredit, a ‘AAA’-rated specialized infrastructure credit guarantee institution, is pleased to announce the credit enhancement of ACOB Lighting Technology Limited, a renewable energy company’s debt issue under a co-financing arrangement with the Climate Finance Blending Facility (the “Climate Facility”) with £10 million seed funding from the United Kingdom Foreign, Commonwealth and Development Office (FCDO), the third transaction under the Climate Facility.
The InfraCredit’s Clean Energy Funding Programme (“CEFP” or the “Programme”) seeks to aggregate, de-risk and unlock domestic institutional investments to support eligible clean energy projects in Nigeria to contribute towards meeting the country’s universal electrification goal by 2030 and the SDG 7 target of ensuring access to affordable, reliable, sustainable, and modern energy for all, whilst putting the country on a path to achieve net zero emissions by 2060.
The Climate Facility provided subordinated first-loss capital that helped de-risk and reduce the capital cost of the project by crowding in 7-year fixed-rate local currency green debt issue in matching direct investments from eight (8) domestic institutional investors in a solar mini-grid project for unserved markets, resulting in a blended affordable interest rate.