The $1.65 million loan will be used to co-finance a 50 MW solar facility under development in Nigeria’s Kaduna State. The company expect to reach financial close for the project by the end of this year.
UAE-based project development and advisory firm Access Power MEA announced that its Nigerian subsidiary Access Quaint Solar Nigeria Ltd. has secured a $1.25 million loan from InfraCo Africa, a multi-government funded, privately managed company providing early stage development capital and expertise to develop infrastructure projects in Sub-Saharan Africa. Access Power specified that the loan will be used to co-finance the development of the 50 MW Abiba Solar project in Nigeria’s Kaduna State through to financial close.
Access Power said InfraCo Africa also granted a counter-guarantee for a 40% share of the PPA development security in the amount of $400,000. The company added that the project will reach financial close in late 2017, with construction scheduled to start next year.
Access Power and local asset management firm Nigerian Quaint Global Energy Solutions signed a $100 million development agreement for the project in November 2015. At the time, the company said that, soon as a PPA was signed, Access Infra Africa would able to seek financing from banks, topping up the 30% equity it had already pledged as part of the $100 million development deal. Quaint had been the recipient of a $1.3 million development grant for the project from the U.S. Trade and Development Agency.
The $100 million investment was originated through the crowdsourcing platform Access Co-Development Facility (‘ACF’). crowdsourcing origination platform. Access Power stressed that the Abiba solar facility will be Kaduna State’s first privately developed renewable power facility, and its first solar project.