Nigerian IPP achieves financial close

powerplant dukeenergy flickrThe Azura Edo IPP will be a 450MW gas-fired plant. This image is used for representational purposes only. (Image source: Duke Energy/Flickr)Nigeria’s first true project-financed independent power plant (IPP), the Azura Edo, has achieved financial close and stakeholders met to finalise issues ahead of the groundbreaking ceremony

According to the contract, a 450MW gas-fired open-cycle power plant located in Edo State, Nigeria, will be built.

The US$900mn will receieve funds from International Finance Corporation (IFC), Standard Chartered Bank, Rand Merchant Bank, Standard Bank, First City Monument Bank, Siemens Bank, FMO, KfW, DEG, Proparco, Emerging Africa Infrastructure Fund, ICF Debt Pool, Swedfund, CDC and OPIC.

Fieldstone acted as financial adviser to the project sponsors of the Azura-Edo IPP. The debt facilities were split across a commercial tranche of US$234m (backed by a mixture of MIGA PRI and IBRD PRG products), a US$267m DFI tranche, a Naira 24bn (US$120m) local bank tranche with a natural hedge and a US$65m mezzanine facility from the DFIs.

Alan Muir, managing director of Fieldstone, said “We are delighted to have advised on the Azura-Edo IPP and to have helped secure the debt and equity funding for the project. Amaya Capital, the Nigerian government and all the other parties involved are to be congratulated for their vision and determination to create a world-class project that has attracted finance from around the world.”

The existing financial structure could be used a template for future power plant investments in Nigeria, stated Fieldstone.

Azura Power is owned by Amaya Capital, the project’s founder and lead sponsor and American Capital Energy & Infrastructure (ACEI). The other sponsors contributing equity were the Africa Infrastructure Investment Fund 2, Aldwych International and the Asset & Resource Management Company.

Fieldstone also acted as financial adviser to Amaya Capital on its equity fundraising process which brought in ACEI; this transaction included a commitment from ACEI to invest up to US$130 million in Azura Power Holdings Ltd., the company responsible for developing the Azura-Edo IPP and focused on becoming the leading power development company in West Africa.

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