Prado Power Energy Limited
Green Finance for Off-Grid Rural Electrification in Nigeria
Financial Close
Oct. 2024
Under
Construction
N1.95bn Private
Capital Mobilised
Green
Certified
850kW
Capacity
15,801 Number of Connections
740 Jobs to be Created
893.53 Tonnes of GHG emissions to be reduced per year
Project Description
The project will construct solar-hybrid mini grid with a total capacity 850kWp in four communities without grid access across Akwa-Ibom and Benue State. The mini grids are expected to connect about 15,801 households, small businesses and agro-processors. The project is expected to commence commercial operations by 2025. Prado Power Limited is a renewable energy company founded in 2014 to provide electricity access to unserved and underserved communities in Nigeria. The Company also provides Engineering, Procurement & Construction (EPC) and consultancy services on renewable energy projects.
Financing StructureThe project was financed through a blended instrument, with the UK funded Climate Finance Blending Facility enabling a 7-year fixed rate local currency debt financing for the project by investing in the subordinated debt tranche, making it the first ever certified blended local currency green sukuk for a solar minigrid project in Nigeria. The Facility’s subordinated first loss capital helped de-risk and reduce the capital cost of the project by unlocking InfraCredit’s AAA rated guaranteed senior green sukuk that crowded in matching investments from 12 domestic institutional investors in a solar mini-grid project for unserved market.
The project on completion will electrify up to 15,801 unserved households and small businesses, create up to 240 direct jobs and 500 indirect jobs whilst enhancing access to renewable energy for productive uses, and avoid 893.53 tonnes of GHG emissions per year. The nominated projects & assets conform to the Climate Bond Standard Solar Sector Criteria and the financing has been labeled and certified ‘Green’ by the Climate Bonds Initiative. The 4 hybrid-solar mini-grids will have environmental benefits of climate change mitigation, energy savings and greenhouse gas reduction and simultaneously have a positive direct contribution to the United Nations Sustainable Development Goals (SDGs) 7, 8, 9, 11, 13 and 17 as identified in the Green Bond Framework.
Technical Assistance Support
funded the green certification costs for the project through its technical assistance facility for climate aligned infrastructure bonds established with InfraCredit. Domestic Institutional Investors
Rating Agency
Green Verifier
Project Video
Awards & Recognition
Domestic Institutional Investors
