Mainstream Energy Solutions Limited has signed a $170m medium-term syndicated acquisition facility to part-finance the concession of the Jebba Power Station and Kainji Power Station, both of which are owned by Kainji Hydro Electric Plc.
The syndication, which was carried out on Friday, was fully underwritten by GTBank, which also acted as the Mandated Lead Arranger on the transaction. Africa Finance Corporation acted as the Co-mandated Lead Arranger.
The concession for Kainji Hydro Electric Plc, which is one of the 18 unbundled successor companies of the Power Holding Company of Nigeria Plc, was awarded to Mainstream Energy Solutions Limited under the privatisation process and incorporates the right to design, construct, operate and maintain the two power plants.
The Chairman, Mainstream Energy Solutions, Alhaji Sanni Bello, 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 GTBank 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.”
Also commenting on the deal, the Chief Executive Officer, GTBank, Mr. Segun Agbaje said that the financing underpinned the lenders’ belief in, and support for, the ambition and the long term growth of the company, and by extension, the growth of the Nigerian power sector to further catalyse the Nigerian economy.
The President and Chief Executive Officer of the Africa Finance Corporation, Mr. Andrew Alli, said, “The lender’s investment in Kanji Hydro Electric Plc will contribute towards reducing Nigeria’s chronic power deficit, foster economic growth and create employment.”
Information from Punch was used in this report.