InfraCredit, a leading infrastructure credit guarantee institution, has announced the credit enhancement of Prado Power Limited’s Guaranteed Fixed-Rate Senior Green Infrastructure Forward Ijarah Lease Sukuk.
This milestone initiative is part of a co-financing arrangement with the £10 million Climate Finance Blending Facility (Facility) funded by the United Kingdom Foreign, Commonwealth, and Development Office (FCDO).
The transaction, the fourth under the Climate Facility, introduces Nigeria’s first blended local currency Green Sukuk, financing a solar-powered rural infrastructure project.
The 7-year Guaranteed Fixed-Rate Sukuk will support the construction, installation, and commissioning of four solar-hybrid mini-grids with a total capacity of 850 kWp across Akwa Ibom and Benue states.
InfraCredit’s Clean Energy Funding Programme (CEFP) is designed to de-risk and mobilize domestic investments in clean energy projects. The blended financing structure combines InfraCredit’s “AAA”-rated guarantee and first-loss capital from the Facility to reduce project costs and enable the development of sustainable energy solutions.
The project aims to electrify 15,801 unserved households and small businesses, create 242 jobs, and reduce greenhouse gas emissions by 893.53 tonnes annually. The initiative aligns with Nigeria’s universal electrification goal by 2030, the Sustainable Development Goal 7 (affordable and clean energy), and the country’s net-zero emissions target by 2060.
Speaking on the transaction, Prado Power CEO, Mr. Washima Mede, expressed gratitude for the support, emphasizing the socio-economic benefits of the project. “This initiative enhances livelihoods, job creation, and sustainable energy access for rural communities,” he said.
The Managing Director of the Rural Electrification Agency (REA), Mr. Abba Aliyu, hailed the transaction as a transformative step in closing Nigeria’s energy access gap. He noted, “This innovative financing model highlights the potential of decentralized renewable energy solutions in driving sustainable development.”
Green Sukuk, a Shari’ah-compliant finance instrument, offers an eco-friendly investment platform for projects addressing climate change. The instrument has been certified green by the Climate Bonds Initiative and verified by Agusto & Co.
InfraCredit CEO, Mr. Chinua Azubike, highlighted the role of Green Sukuk in energy transition and job creation. “We are proud to develop Islamic finance products that unlock investments for clean energy while addressing energy poverty in Nigeria,” he stated.
The initiative benefited from technical, legal, and environmental due diligence supported by FSD Africa under a Technical Assistance Agreement. The World Bank Nigeria Electrification Project, administered by the REA, further validated the project.
This landmark transaction underscores InfraCredit’s commitment to innovative financing models, leveraging partnerships to advance Nigeria’s renewable energy goals and socio-economic development.
