AFC provided comprehensive financial advisory services to the Federal Government of Nigeria on this landmark transaction, including the design of the Programme’s negotiation strategy framework.
LAGOS, Nigeria – Africa Finance Corporation (AFC) (www.AfricaFC.org), the continent’s leading infrastructure solutions provider, is pleased to announce its role as Co-Financial Adviser on the successful issuance of the inaugural tranche of bonds under the Federal Government of Nigeria’s Presidential Power Sector Financial Reforms Programme (“PPSFRP” or the “Programme”).
The issuance of ₦501,000,000,000 (Five Hundred and One Billion Naira), marks a critical milestone in the implementation of the ₦4 trillion Power Sector Bond Programme, designed to resolve over a decade of legacy debt obligations within the Nigerian electricity supply industry.
The Programme was overseen by the Presidential Power Sector Debt Reduction Committee (PPSDRC), with the Office of the Special Adviser to the President on Energy providing technical leadership and implemented through Nigerian Bulk Electricity Trading Plc (NBET)’s special purpose vehicle – NBET Finance Company Plc. The issuance proceeds will settle verified, overdue receivables owed to Power Generation Companies (GenCos) for electricity supplied between February 2015 and March 2025, extinguishing legacy claims and injecting liquidity into the electricity industry.
This transformational initiative by the Federal Government of Nigeria is designed to restore financial stability, enhance liquidity and strengthen the balance sheet of Nigerian GenCos through the clearance of outstanding arrears. By addressing these legacy obligations, the initiative is expected to boost domestic and international investor confidence and attract fresh capital across the entire electricity sector value chain.
The transaction received strong support from the pension fund investment community with about 50% of the total financing secured from Pension Fund Administrators, successfully mobilizing domestic capital for critical electricity infrastructure in Nigeria.
AFC provided comprehensive financial advisory services to the Federal Government of Nigeria on this landmark transaction, including the design of the Programme’s negotiation strategy framework, support in negotiating and executing Settlement Agreements with GenCos, and in the structuring of the bond issuance. Working in partnership with CardinalStone Partners as co-Financial Advisers, this transaction reflects AFC’s deep and local market expertise in delivering complex, high-impact policy advice and financial solutions that catalyse sector-wide reforms.
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