Elektron Floats ₦200bn Bonds, Raises ₦4.64bn For Infrastructure

Elektron Finance SPV Plc, a funding vehicle wholly owned by Elektron Energy Development Strategies Limited, has announced the launch of its ₦200bn Bond Issuance Programme and the completion of a ₦4.64bn 15-year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond.

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

According to the company, 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, Nigeria’s foremost commercial and financial hub.

It noted that 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.

While the distribution network is substantially complete, construction of the generation plant has commenced and is scheduled for commercial operations in 2026.

“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,” remarked MD and Co-CEO at Elektron Energy, Tola Talabi.

Talabi noted 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.

The Bond Issuance was led by Vetiva Advisory Services Limited and Anchoria Advisory Services Limited as Lead Issuing Houses, with CardinalStone Partners Limited, ARM Capital Partners, FBNQuest Merchant Bank Limited, and Iron Global Markets Limited acting as Joint Issuing Houses. Custodian Trustees Limited served as Trustee, while legal advisory was provided by Detail Commercial Solicitors and Templars.

The bonds were rated by Agusto & Co. and Global Credit Rating Company (GCR).

Elektron Floats ₦200bn Bonds, Raises ₦4.64bn For Infrastructure is first published on The Whistler Newspaper