InfraCredit Mobilises Local Currency Debt for First Electric’s Energy Project

Oriarehu Bonny

InfraCredit, a ‘AAA’-rated specialised infrastructure credit guarantee institution has announced its credit enhancement of First Electric Power and Automation Services Limited’s local currency debt issuance under a co-financing arrangement with the Climate Finance Blending Facility (CFBF).

“This marks the first mesh-grid clean energy infrastructure project and the sixth transaction under the Facility, which was seeded with £10 million in concessional capital from the UK Foreign, Commonwealth & Development Office (FCDO) and later strengthened by a US$10 million investment from British International Investment (BII), alongside a US$20 million counter-guarantee facility.

“The transaction will finance the construction and commissioning of 20 mesh grid electricity networks with a combined capacity of 724.8 kWp in underserved communities across Gombe, Nasarawa and Ondo states. Once operational, the project is expected electrify approximately 5,156 households and small businesses, create 616 jobs, and avoid 762 tonnes of CO₂ emissions annually, advancing Nigeria’s universal electrification goals and contributing directly to Sustainable Development Goal 7,” it said in aa statement.

UK Deputy High Commissioner in Lagos, Mr. Jonny Baxter, said: “The Climate Finance Blending Facility (CFBF), managed by InfraCredit and co-funded by the UK, continues to demonstrate its position as a pioneering investor for power sector solutions. This transaction marks the Facility’s first investment in innovative mesh grid projects, designed to lower the cost of distributed renewable energy solutions for rural and remote communities.”

Chief Executive Officer of InfraCredit, Mr. Chinua Azubike, said: “Our guarantee of First Electric under the Climate Finance Blending Facility marks the Facility’s first investment in mesh-grid infrastructure and underscores the scale and maturity the platform has now achieved in financing distributed renewable energy in Nigeria.”

Chief Executive Officer of First Electric Power and Automation Services Limited, Mr. Daniel Komolafe, said: “This milestone reflects First Electric’s commitment to bridging Nigeria’s energy gap through innovation and collaboration. With InfraCredit’s support, we are demonstrating that clean energy solutions can be impactful, commercially viable, and sustainable.”

Chief Executive Officer of AMDA, Mr. Olamide Niyi-Afuye said: “This transaction demonstrates the transformative power of strategic partnerships in advancing energy access. As a valued AMDA member, First Electric’s collaboration with InfraCredit showcases a financing model that can unlock domestic capital and accelerate Distributed Renewable Energy (DRE) across Africa.”