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ARM invests N1bn in Azura-Edo power plant

By on May 11, 2014

Asset & Resource Management Company Limited says it is investing N1bn in the 450MW Azura-Edo IPP project being developed near Benin in Edo State.

The firm is the only indigenous co-sponsor and equity investor in the project.

A statement by the company on Wednesday said the signing of key industry contracts and debt financing on the $750m transaction had been completed.

It stated that the financing comprised long term debt and equity committed by a consortium of local and international financiers led by the lead sponsor, Amaya Capital Limited, and co-sponsored by other equity investors, including the ARM.

According to the statement, the financing also incorporates a number of novel features for the Nigerian market, such as the financial support provided by the Federal Government through a Put and Call Option Agreement.

It stressed that it was the first Nigerian power project to benefit from the World Bank’s recently developed ‘Partial Risk Guarantee’ structure, specifically created to meet the developing needs of emerging markets worldwide.

It added that a further $300m was being invested by Seplat Petroleum Development Company Plc in new gas processing facilities at the Oben Gas Plant, which would supply the Azura-Edo IPP with the project’s fuel gas requirements.

 

 

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