Elektron Finance SPV Plc, a funding vehicle wholly owned by Elektron Energy Development Strategies Limited, has announced the launch of its N200 billion bond issuance programme and the successful completion of a N4.64 billion 15-year Series 1 senior guaranteed fixed rate infrastructure bond.

The bond, guaranteed by Infrastructure Credit Guarantee Company Plc (InfraCredit), which is rated “AAA” by both Agusto & Co. and Global Credit Rating Company (GCR), has received approval from the Securities and Exchange Commission (SEC).

This bond issuance marks Elektron’s debut in the Nigerian debt capital markets and was well received by a broad base of institutional investors, reflecting strong confidence in Elektron’s infrastructure delivery capabilities, the company said.

Proceeds from the bond will be deployed towards the development of the embedded independent Power Project being developed by Victoria Island Power Limited (VIPL), a wholly owned subsidiary of Elektron Power Infracom (EPI), a subsidiary of Elektron.

The power project is a 30MW gas-fired embedded generation plant located in Victoria Island, Lagos.

The project features three high-efficiency 10MW reciprocating gas engines from Wartsila, and a 12.6km dedicated electricity distribution network that will supply power directly to the Victoria Island commercial district.

Managing Director and Co-Chief Executive Officer, Elektron Energy, Tola Talabi, said: “We are especially grateful to InfraCredit for its unwavering support, and to our bondholders for their trust in our vision.

“Their involvement reflects a shared belief in Elektron’s capacity to deliver sustainable energy infrastructure projects.”

The VI power project is being implemented in partnership with the 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.