Nigeria’s Elektron Finance launches $130mn bond programme for Lagos power project

Elektron Finance SPV, the funding arm of Nigeria’s Elektron Energy Development Strategies, has launched a NGN200bn ($130mn) bond issuance programme, marking its debut in the country’s debt capital market with strong institutional investor participation, The Nation has reported.

The programme’s first tranche, a NGN4.64bn ($3mn) 15-year Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond, has been completed with a “AAA” rating from Agusto & Co. and Global Credit Rating Company.

Proceeds from the issuance will finance the Victoria Island Power Project, a 30MW gas-fired embedded generation facility under development in Lagos by Victoria Island Power Limited, a wholly owned subsidiary of Elektron Power Infracom. The plant will use three high-efficiency 10MW Wartsila reciprocating gas engines and operate alongside a 12.6km dedicated electricity distribution network supplying the Victoria Island commercial district.

The distribution network is nearing completion, while construction of the power plant is ongoing, with commissioning targeted for 2026.

The project is being developed in partnership with Eko Electricity Distribution Company and supported by capital from major investors including ARM-Harith Infrastructure Fund, Nigeria Sovereign Investment Authority, Bank of Industry, FBNQuest Merchant Bank, and Stanbic IBTC Infrastructure Fund.