The nationâ€™s power generation may increase by 450 megawatts, mw as Amaya Capital; founder and majority shareholder of Azura Power Holdings has secured S$876 million for execution of Azura-Edo power plant.
Â Amaya Capital Limited and Azura Power Holdings Limited confirmed in a statement yesterday that they have reached financial close for Amaya Capitalâ€™s Flagship West Africa power investment, the 450MW Azura-Edo Independent Power Project in Edo State, Nigeria.
Â They indicated that the US$876 million transaction is the first of a new wave of project-financed Greenfield IPPs currently being developed in Nigeria.
Â The parties maintained that the financing of the Azura-Edo IPP involves US$190 million of equity and US$686 million of debt from a consortium of local and international financiers.
Â They disclosed that Azura is majority owned by Amaya Capital, the founder and lead sponsor of the project and American Capital Energy & Infrastructure.
The parties indicated that other equity investors in the Azura-Edo project include funds managed by African Infrastructure Investment Managers, Aldwych Azura Ltd and the ARM-Harith Infrastructure Fund.
Â According to them, the completion of financing for Azura represents the second major infrastructure investment by Amaya Capital, the first being Seven Energy, the gas infrastructure company.
They maintained that through its investments in Seven Energy and Azura, Amaya Capital has been the lead sponsor and active investor in two companies responsible for the deployment of over $3 billion of capital in the gas and power segments of the energy sector.
The parties indicated that these early stage investments have contributed to the development of commercially viable markets in gas and electricity in Nigeria, two fundamentally important market segments for Nigeriaâ€™s evolving energy sector, but where private sector investment had been hitherto limited.
Â They disclosed that Amaya Capital has established itself as one of the leading infrastructure project developers and financiers in Africa, with a focus on the challenging high growth energy related sectors that have the potential to catalyse wider development and impact across the region.
Â The parties noted that Amaya Capital actively shapes its investee companies through the direct provision of high quality management, access to relevant capital and strategic partnerships where appropriate.
They maintained that the Azura-Edo IPP is the first Nigerian power project to benefit from the World Bankâ€™s â€˜Partial Risk Guaranteeâ€™ structure, specifically created to meet the developing needs of emerging markets world-wide, and political risk insurance for equity and commercial debt from the Multilateral Investment Guarantee Agency, also part of the World Bank group.
Â The parties noted that the overall transaction will be underpinned by financial support provided by the Federal Government of Nigeria through a Put and Call Option Agreement complementing the Power Purchase Agreement between the Azura-Edo IPP and the Nigerian Bulk Electricity Trading PLC.
They disclosed that the Azura-Edo IPP comprises a 450MW open cycle gas turbine power station; a short transmission line connecting the power plant to a local substation and a short underground gas pipeline connecting the power plant to the countryâ€™s main gas-supply.
The parties observed that it represents the first phase of a 1,500MW power plant facility. This first phase of the plant, which is targeted to come on stream in 2017, is forecast to create over 1,000 jobs during its construction and operation and to supply over 12 million people in Nigeria.