Publish Date : 06-Aug-2013
Under the scheme of arrangement that has Guaranty Trust Bank Plc (GTBank) underwriting the loan, The Africa Finance Corporation (AFC) has offered a $170 million debt funding facility, for Mainstream Energy Solutions Limited (MESL)'s acquisition of Kainji Power Station and Jebba Power Station.
A N27 billion medium term syndicated acquisition facility has been sealed by GTBank and MESL , for the purpose of part-funding the concession of the power stations, that Kainji Hydro Electric Plc owns.
Designed to consolidate MESL's bid for the acquisition of Kainji Hydro Electric, under the existing privatization programme, the move would also help to pay off the last tranche for the power company, which was nearing its date.
While the Africa Finance Corporation acted as co-mandated lead arranger, GTBank, which fully underwrote the syndication, also served as mandated lead arranger on the deal.
The President and CEO of AFC, Andrew Alli, said: 'AFC's long term vision is to help address Africa's infrastructure deficit and ensure sustainable economic growth for the continent. Growth of the Nigerian economy cannot be fully realised without an efficient and functioning power sector. Power is one of AFC's high priority sectors for investment, and arguably Africa's most significant need.'
He added : 'To this end AFC has partnered with the United States government through the United States Agency for International Development in the $7 billion 'Power Africa Initiative' to accelerate investment in Africa's power sector over the next five years and increase access to clean, geothermal, hydro, wind and solar energy. AFC's investment in Kanji power will contribute towards reducing Nigeria's chronic power deficit, foster economic growth and create employment.'
MESL, Chairman, Col. Sani Bello (rtd), said : 'This financing represents an important milestone for the company in its bid to play a key role in the power sector reform initiative of the Federal Government. We appreciate the support of Guaranty Trust Bank and Africa Finance Corporation for providing the required financing to support the company's vision to manage and restore the nation's foremost hydro power plants. We must also acknowledge the significant contribution of the Federal Government of Nigeria, the Federal Ministry of Power, the National Council on Privatisation, the Bureau of Public Enterprises, and the regulatory agencies, who have together created an enabling environment for this acquisition.'
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