DeRisk Advisory Services Ltd. is pleased to announce that the 450MW Azura-Edo IPP in Edo State, Nigeria reached financial close on 28th December 2015.
Dear <<First Name>>,
DeRisk acted as MIGA (World Bank Group) agent and advised investors and lenders to the Azura-Edo IPP power project, which involved coordinating multiple insurance application and underwriting processes over 5 years. The project is widely viewed as major achievement in the Nigerian power sector and the first of what is hoped to be a series of project-financed independent power plants.
â€œDeRisk is proud to have helped investors in Azura secure MIGA coverage, which was essential for the project to reach financial close,â€ said Andrew Gaines, managing director of DeRisk. â€œThere is enormous potential for more power projects in Nigeria and across Africa, and we expect Azura to be a real catalyst to them getting financed and built.â€
The total project cost is in the region of US$900m, with around US$712m in senior and mezzanine debt being provided by more than fifteen financial institutions with the balance of the funding provided by equity sponsors. MIGA covered US$492m of equity and debt.
The project sponsors advised by DeRisk and covered by MIGA include the founding and lead sponsors Amaya Capital as well as American Capital Energy & Infrastructure, the Africa Infrastructure Investment Fund 2, Aldwych International Limited alongside Pan African Infrastructure Development Fund 2 and ARM-Harith Infrastructure Fund.
The lenders advised by DeRisk and covered by MIGA include global mandated lead arranger Standard Chartered Bank, joint mandated lead arranger Rand Merchant Bank, The Standard Bank of South Africa, Siemens Bank, and KfW. Other lenders on the transaction included co-lead DFI arrangers International Finance Corporation (IFC) and FMO and First City Monument Bank as local loan arranger, DEG, Proparco, Emerging Africa Infrastructure Fund, ICF Debt Pool, Swedfund, CDC and OPIC. The debt facilities included a commercial tranche backed by MIGA PRI and IBRD PRG products, a DFI tranche, a local Nigerian Naira tranche and a DFI mezzanine facility.
See MIGAâ€™s press release:
DeRisk is currently working with several developers and investors on the next wave of IPPs in Nigeria.
DeRisk Advisory Services Ltd. is an authorised agent of the Multilateral Investment Guarantee Agency (MIGA), the World Bank Groupâ€™s political risk insurance and credit enhancement division. DeRisk has completed over 25 insurance transactions in Africa with MIGA, OPIC and others since 2006. For more information, contact DeRisk managing director, Andrew Gaines, on +44 20 7099 7032.
DeRisk advises investors and businesses on making investment insurance work in frontier markets. We start by answering questions like:
- How can political risk insurance or other risk products make my business plan 'bankable' for lenders?
- How can I deal with the risks that keep equity investors from investing in my business or project?
- What does it cost to insure this investment against political risk?
- Who will cover an investment in this country right now, and how long will it take?
- How do I show that I've mitigated environmental and social impacts in order to qualify for insurance or financing from multilaterals?