InfraCredit guarantees GLNG’s N11.85b 10-year series II infrastructure bond

InfraCredit, an ‘AAA-rated’ specialised infrastructure credit guarantee institution, has announced its guarantee of GLNG Funding SPV Plc’s N11.85 billion 10-Year series II senior guaranteed fixed rate infrastructure bonds, due in 2035.

The bond is under the N50 billion debt issuance programme of GLNG.

GLNG Funding SPV Plc is a special-purpose funding vehicle established by the promoters of Green Liquified Natural Gas Limited and Green Fuels Limited (GFL).

GLNG is a clean energy solutions provider, delivering natural gas and power-as-a-service to industrial and logistics customers, which enables them to reduce their reliance on inefficient and environmentally damaging diesel, low-pour fuel oil (LPFO) and petrol solutions.

GFL has operated its compressed natural gas (CNG) distribution business since 2011 and GLNG began its power-as-a-service activities in 2018. GFL presently delivers an average of 5.2 million standard cubic meters (scm) of CNG per month to industrial and commercial customers in Southwest Nigeria which lack access to piped gas infrastructure.

The bond proceeds will be used to finance the construction of a mini-LNG plant with the capacity to liquefy 200,000 scm per day equivalent to 150 tons per day.

The company’s two gas compression and distribution facilities in Ogun state make it the largest in Nigeria with approximately 10.5 million standard cubic feet per day (scf/day) capacity, while its LNG business and solar power initiatives are currently in the development stage.

In a statement, the Group Managing Director of GLNG, Arundeep Sira, stated: “We are excited about the impact this funding will have on Nigeria’s sustainable energy future, this project will not only enhance our natural gas infrastructure but also contribute to economic growth and environmental sustainability.”

The Chief Executive Officer of InfraCredit, Chinua Azubike, said: “It has been an impactful journey working with Green Liquefied Natural Gas Limited since 2019 from the project development phase with the support of USTDA, to its maiden debt issuance in the capital markets in July 2023 and now the second series of its guaranteed bond subscribed by our domestic pension funds.

“We are excited to continue to support GLNG in its next phase of growth as a diversified energy company integrating renewable energy sources into its energy mix which will reduce its levelised cost of energy alongside its commitment to carbon neutrality.

“The project upon completion, will create over 200 jobs, bolster local industries, and drive economic development. It re-affirms the commitment and appetite of domestic pension funds in financing well-structured and sustainable infrastructure assets, whilst also reinforcing the private sector’s ability to raise long-term local currency finance from local debt capital markets for infrastructure development.”