How It Works

Financing Structure

The Facility will use its impact-seeking capital to provide blended first loss and low-interest funding to eligible off-grid energy companies originated by InfraCredit to enable access to naira debt financing from the domestic debt capital markets guaranteed by InfraCredit and catalyse (with a target ratio of at least 50%) domestic institutional investments from pension funds, insurance companies, and other asset managers towards increasing clean energy access in Nigeria in line with commitments at COP26.

Facility Structure

Process for Accessing Funding from the Climate Finance Blending Facility

Developer Completes Preliminary Checklist and Submits Guarantee Request Letter to InfraCredit

InfraCredit Conducts Preliminary Assessment, Confirms Eligibility for Facility Support & Obtains New Business Committee Approval

InfraCredit completes KYCand Company executesMandate Letter

InfraCredit conducts credit assessment and obtains BoardCredit Committee approval

InfraCredit conducts ESG, technical, legal due diligence on the project

Facility’s Investment Committee/Adviser reviews preliminary project information and issues No-Objection

InfraCredit obtains Facility’sInvestment Approval and negotiates Financing Agreements with developer

Company satisfies CPs to closing

Financial Close (Co-financing)

Developer Completes Preliminary Checklist and Submits Guarantee Request Letter to InfraCredit

InfraCredit Conducts Preliminary Assessment, Confirms Eligibility for Facility Support & Obtains New Business Committee Approval

InfraCredit completes KYCand Company executesMandate Letter

InfraCredit conducts credit assessment and obtains BoardCredit Committee approval

InfraCredit conducts ESG, technical, legal due diligence on the project

Facility’s Investment Committee/Adviser reviews preliminary project information and issues No-Objection

InfraCredit obtains Facility’sInvestment Approval and negotiates Financing Agreements with developer

Company satisfies CPs to closing

Financial Close (Co-financing)

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