Fieldstone would like to congratulate the Azura-Edo IPP on reaching financial close.
Fieldstone acted as financial adviser to the project sponsors of the Azura-Edo IPP, Nigeria’s first true project-financed independent power plant. Much of the resulting financial structure can be used as a template for further investment in the power sector in Nigeria.
The project, which consists of the construction, operation and maintenance of a 450MW gas-fired open-cycle power plant located in Edo State, reached financial close on December 28th, 2015.
The total funding committed is approximately US$900m provided by a set of 20 international banks and equity funders.
Lenders were the 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. 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.
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 focussed on becoming the leading power development company in West Africa.
Alan Muir the Managing Director in charge of the transaction 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. This project is a trailblazer that will light the path for other projects in Nigeria. Amaya Capital, the Federal Government of Nigeria, 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.”
Source: Press Release