Home News Zenith Bank, FAD sign $100m investment in Nigeria’s power sector

Zenith Bank, FAD sign $100m investment in Nigeria’s power sector

By Alex Chiejina

LAGOS (Sundiata Post) – Zenith Bank Plc and French Development Agency (AFD), operator of France’s bilateral development finance mechanism, have signed a $100 million power sector credit facility to support new investments in the CAPEX (capital expenditure) of Distribution Companies (DISCOs) in the power sector in Nigeria.

Under the loan arrangement, a maximum of $50 million can be on-lent to any single borrower at single digit interest rate for a tenor of between seven and 12 years, with a moratorium of two to three-and-a-half years—depending on project’s cash flow.

The AFD facility is aimed at reinforcing, rehabilitating and modernising the existing distribution networks, which is a prerequisite for the connection of new customers while ensuring the stability of the grid. The loan arrangement also provides for technical assistance and other advisory services, both to the benefiting DISCO and the partnering bank.

Zenith Bank Plc has continued to remain a key player in many other sectors, including oil and gas, agriculture, manufacturing, communication, transportation, real estate and construction, etc. In the financial year ended December 31, 2015, Zenith Bank reported a profit after tax (PAT) of N105.66 billion, with total assets standing at over four trillion Naira.

AFD, operator for France’s bilateral development finance mechanism, is a public industrial and commercial institution with the status of specialized financial institution. Its action is in line with the policy set out in France’s Framework Document for Development Cooperation. It works to combat poverty and promote sustainable development by financing and supporting projects that improve living conditions for populations, promote economic growth and protect the planet.

In 2014, AFD allocated EUR 8.1Billion to finance projects, including EUR 6.35Billion in developing countries and EUR 1.55bn for overseas France.

Previous articlePetrol price: Group leader wants FG, NLC to dialogue
Next articleRoads get Enugu State Govt. attention-Commissioner

Leave a Reply