InfraCredit, a ‘AAA’-rated specialised infrastructure credit guarantee institution has announced its guarantee of GLNG Funding SPV Plc’s N11.85 billion 10-Year Series II Senior Guaranteed Fixed Rate Infrastructure Bonds, due 2035 under the N50 billion Debt Issuance Programme.
GLNG Funding SPV Plc is a special-purpose funding vehicle established by the promoters of Green Liquified Natural Gas Limited (GLNG) and Green Fuels Limited (GFL), together referred to as the company as part of its capital-raising plan.
GLNG is a clean energy solutions provider, delivering natural gas and power-as-a-service to industrial and logistics customers which enable them to reduce their reliance on inefficient and environmentally damaging diesel, Low Pour Fuel Oil (LPFO) and petrol solutions.
GFL has operated its compressed natural gas (CNG) distribution business since 2011 and GLNG began its power-as-a-service activities in 2018. GFL presently delivers an average of 5.2 million standard cubic meters (scm) of CNG per month to industrial and commercial customers in Southwest Nigeria which lack access to piped gas infrastructure.
The Bond proceeds will be used to finance the construction of a mini-LNG plant with the capacity to liquefy 200,000scm per day equivalent to 150 tons per day.
The company’s two gas compression and distribution facilities in Ogun State make it the largest in Nigeria with approximately 10.5 million standard cubic feet per day (scf/day) capacity, while its LNG business and solar power initiatives are currently in development stage.
The group managing director of GLNG, Arundeep Sira who made this known said: “We are excited about the impact this funding will have on Nigeria’s sustainable energy future, this project will not only enhance our natural gas infrastructure but also contribute to economic growth and environmental sustainability.”
According to the chief executive officer of InfraCredit, Chinua Azubike, “It has been an impactful journey working with Green Liquefied Natural Gas Limited since 2019 from the project development phase with the support of USTDA, to its maiden debt issuance in the capital markets in July 2023 and now the second series of its guaranteed bond subscribed by our domestic pension funds.
We are excited to continue to support GLNG in its next phase of growth as a diversified energy company integrating renewable energy sources into its energy mix which will reduce its levelised cost of energy alongside its commitment to carbon neutrality.
The project upon completion, will create over 200 jobs, bolster local industries, and drive economic development, it re-affirms the commitment and appetite of domestic pension funds in financing well-structured and sustainable infrastructure assets, whilst also reinforcing the private sector’s ability to raise long-term local currency finance from local debt capital markets for infrastructure development.”
As part of InfraCredit’s Clean Energy Transition Strategy and Roadmap, InfraCredit has signed a Technical Assistance Agreement with the Company and its newly established renewable energy subsidiary, Greenewable Energy Limited (Greenewable Energy), to support the diversification of GLNG’s energy mix.
This partnership aims to integrate renewable energy solutions into GLNG’s offerings for both existing and new industrial customers.
The TA will drive the deployment of solar energy solutions, enhancing industrial energy security while contributing to Nigeria’s clean energy transition. It also aligns with the country’s Nationally Determined Contributions (NDCs) to the Paris Agreement, advancing Nigeria’s shift toward a low-carbon, sustainable energy-driven economy.
Through this collaboration, InfraCredit will support Greenewable Energy with technical feasibility studies under its Technical Assistance Facility (TAF) to ensure a structured and bankable approach to deploying renewable energy solutions for GLNG’s industrial customers. In addition, through its Clean Energy Funding Programme, InfraCredit will provide blended finance support to scale the adoption of solar energy solutions, particularly across Southwest Nigeria, including Lagos, Ogun, and surrounding states.
Backed by InfraCredit’s guarantee, GLNG successfully issued its first bonds through the debt capital markets in 2023. With InfraCredit’s guarantee, the GLNG Series II Bonds were also rated ‘AAA’ by GCR and Datapro, reflecting the high degree of creditworthiness and the robust quality of the Bonds.
The project aligns with the federal government’s sustainable growth goals in advancing cleaner energy solutions and is expected to create over 500 direct and 2,000 indirect jobs. It also supports the United Nations Sustainable Development Goals: 5, 7, 8, 9, 11, and 13.
The United States Trade and Development Agency provided a grant for the technical feasibility study of the Group’s LNG project in 2020, highlighting its technical and commercial viability along with the anticipated environmental and social impact of improving energy reliability while displacing emissions from dependence on liquid fuels.
FCMB Capital Markets Limited acted as Lead Issuing House/Bookrunner and ARM Capital Limited and Vetiva Advisory Services Limited acted as Joint Issuing Houses and Bookrunners for the transaction.
