InfraCredit Mobilises Local Currency Debt For First Electric Power Project

InfraCredit has provided credit enhancement for a local currency debt issuance by First Electric Power and Automation Services Limited under a co-financing arrangement with the Climate Finance Blending Facility (CFBF).

InfraCredit is a ‘AAA’-rated specialised infrastructure credit guarantee institution. The transaction marks the first mesh-grid clean energy infrastructure project financed by the facility and its sixth overall.

The CFBF was initially seeded with £10 million in concessional capital from the UK Foreign, Commonwealth & Development Office (FCDO) and later strengthened by a US$10 million investment from British International Investment (BII), alongside a US$20 million counter-guarantee facility.

UK Deputy High Commissioner in Lagos, Jonny Baxter, said the investment highlights the Facility’s role in supporting power sector solutions, noting that the mesh-grid model is designed to reduce the cost of distributed renewable energy for rural and remote communities.

InfraCredit’s Chief Executive Officer, Chinua Azubike, said the guarantee reflects the growing maturity of the platform in financing distributed renewable energy projects in Nigeria. He added that the Facility’s expanding portfolio is expected to increase electricity access, support job creation and contribute to emissions reduction.

First Electric’s Chief Executive Officer, Daniel Komolafe, described the transaction as a milestone in the company’s efforts to address Nigeria’s energy gap through commercially viable clean energy solutions.

The project is registered under the World Bank-supported Distributed Access through Renewable Energy Scale-up (DARES) Performance-Based Grant Programme, administered by the Rural Electrification Agency (REA). It also received technical assistance funding from FSD Africa and bridge financing support from InfraCredit’s Construction Finance Warehouse Facility, funded by the Nigeria Sovereign Investment Authority.

InfraCredit said the transaction demonstrates its approach to mobilising domestic capital for sustainable infrastructure and expanding access to clean energy across Nigeria.

When completed, the project is expected to supply electricity to about 5,156 households and small businesses, create 616 jobs, and reduce carbon emissions by an estimated 762 tonnes of carbon dioxide annually. The initiative aligns with Nigeria’s universal electrification goals and supports Sustainable Development Goal 7 on affordable and clean energy.