Darway Coast, Nigeria
Green Bonds for Sustainable Rural Electrification
Financial Close Sep. 2022
Under Construction
₦800m Private Capital Mobilised
Green Certified
526KW Capacity
7,711 Number of Connections
2296 Jobs to be Created
4856 Tonnes of GHG Emissions to be reduced
Project Description
Darway Coast is a renewable energy company with expertise in the provision of hybrid solar mini-grid and micro-grid solutions for residential, commercial, and industrial customers in off-grid and underserved areas within Nigeria. Incorporated in 2015, the Company has deployed four mini grids serving four communities in Imo State (3.3kW), Lagos State (50kW), and Rivers State (38kW) under ten-year PPAs. Using a “Pay-As-You-Go” business model and smart meters, Darway Coast can manage these customers using a remote monitoring system that helps regulate demand, detect, and resolve issues swiftly as well as implement remote disconnections and reconnection.
The project will construct 526.1 Kw total capacity of isolated solar mini-grids in six communities without grid access within Rivers State and Abia State in Southern Nigeria, that will connect 7,711 households and small businesses. Construction is planned to commence in 2022 and operations for 2023.
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 debt issue 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 bonds that crowded in first-time matching investments from 6 domestic institutional investors in a solar mini-grid project for unserved markets.
The project on completion will electrify up to 7,711 unserved households and small businesses, create up to 497 temporary and permanent job whilst enhancing access to renewable energy for productive uses.
The nominated projects & assets conform to the Climate Bonds Standard Solar Sector Criteria and the financing has been labelled and certified green by the Climate Bonds Initiative.
The 6 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.
KfW Development Bank supported the technical, legal and ESG due diligence costs for the project under a technical assistance facility with InfraCredit.
Rating Agency
Green Verifier
Project Video
Awards & Recognition
Darway Coast EMEA Finance Achievement Awards for the year 2022
The Darway Coast 7-year Senior Guaranteed Fixed Rate Green Infrastructure Bond due 2029 has been awarded the Best sustainability bond in the Debt Capital Markets Category of the prestigious EMEA Finance Achievement Awards for the year 2022.
The InfraCredit-Guaranteed Darway Coast Bond, was the first of its kind, representing the first green (certified) infrastructure debt issue for a solar mini-grid project in Nigeria as well as the first seven-year local currency debt financing for rural off-grid energy in the Nigerian domestic capital market.
The transaction utilized an innovative blended finance model which pooled concessional first-loss funding from the UK-funded Climate Finance Blending Facility.
Domestic Institutional Investors
