Shiroro Power Plant Receives N8.5bn Boost


Shiroro Hydroelectric Power Plant, Niger State, has received a N8.5 billion investment boost as its operators, North South Power Company Limited’s (NSP) issue Green Bond to optimize its output.
The 15-year tenured bond with 15.60 per cebt yield was issued under a 50billion Debt Issuance Programme.
It was made possible through the guarantee of InfraCredit, a ‘AAA’ rated infrastructure credit enhancement facility backed by the Nigeria Sovereign Investment Authority, GuarantCo.
NSP is the operator of a 30-year concession on the 600MW Shiroro Hydroelectric Power Plant.
The NSIA said in Abuja, at the weekend, that with InfraCredit’s guarantee, the Series 1 Green Bonds was accorded a ‘AAA’ credit rating by Agusto & Co. and Global Credit Ratings Co. and issued on 27th February 2019 as the first certified corporate green bond and the longest tenored (15-year) corporate bond issued in the Nigerian debt capital markets approved by the SEC.
The Series 1 Green Bonds was 160% subscribed with firm commitments from 15 institutional investors including eleven 11 pension funds and priced at 70 basis point spread.
According to the authority, the development of the Green Bond Framework and the pre-issuance verifications were obtained through technical assistance support from the African Local Currency Bond Fund, an initiative of KfW Development Bank.
The Executive Vice Chairman and CEO of North South Power Company Limited, Engr. Olubunmi Peters, noted “the success of the bond issuance was a significant milestone in the company’s long-term corporate strategy, demonstrating its market leadership, innovation and commitment to the highest standards of environmental, social and corporate governance.
“With the completion of the Series 1 Guaranteed Green Infrastructure Bonds issuance, the company has established a long-envisioned link with a more sustainable long-term, local currency financing required to implement its ambitious strategic power generation expansion plan through the capital markets.”
According to the Chief Executive Officer of InfraCredit, Chinua Azubike, “Infrastructure assets like Shiroro Hydroelectric Power Plant generate social, environmental and economic impact, such as contributing to greenhouse gas emissions reduction, revitalising disenfranchised areas, improving access to services and creating employment.