Elektron Finance SPV Plc, a funding vehicle wholly owned by Elektron Energy Development Strategies Limited, has announced the launch of its N200bn bond issuance programme and the successful completion of its debut N4.64bn Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond.
The 15-year Series 1 bond, guaranteed by Infrastructure Credit Guarantee Company Plc and rated “AAA” by Agusto & Co. and Global Credit Rating Company, received regulatory approval from the Securities and Exchange Commission.
According to a statement made available to our correspondent on Sunday, the proceeds from the bond will be used to finance the 30 MW Victoria Island Power Project being developed by Victoria Island Power Limited, a wholly owned subsidiary of Elektron Power Infracom, itself a subsidiary of Elektron.
The gas-fired embedded generation plant, located in Lagos, will comprise three 10 MW high-efficiency reciprocating gas engines supplied by Wärtsilä and a 12.6 km dedicated electricity distribution network to serve the Victoria Island commercial district.
According to the statement, the distribution network is substantially complete, while construction of the generation plant has commenced, with commercial operations scheduled for 2026.
The project is designed to provide a reliable electricity supply to businesses in one of Nigeria’s key economic hubs.
The Managing Director and Co-Chief Executive Officer of Elektron Energy, Tola Talabi, said the issuance reflected investor confidence in the company’s capacity to deliver sustainable energy projects.
Tola added that “The project is being implemented in partnership with Eko Electricity Distribution Company Plc and backed by capital from InfraCredit, ARM-Harith Infrastructure Fund, Nigeria Sovereign Investment Authority, Bank of Industry, FBNQuest Merchant Bank Limited, and Stanbic IBTC Infrastructure Fund. Vetiva Advisory Services Limited and Anchoria Advisory Services Limited acted as lead issuing houses, with CardinalStone Partners Limited, ARM Capital Partners, FBNQuest Merchant Bank Limited, and Iron Global Markets Limited serving as joint issuing houses. Custodian Trustees Limited acted as trustee, while legal advice was provided by Detail Commercial Solicitors and Templars.”
