Afreximbank funds Nigerian power plant privatisation

Afreximbank funds Nigerian power plant privatisation
August 11, 2015 Advocaat Law Practice

The African Export-Import Bank (Afreximbank) has supported the privatisation of a Nigerian power plant located in Ogorode, in the Delta State of Nigeria.

The bank is extending a $51 million loan to Eurafric Power, a Lagos-based power firm, for the acquisition of 100% of Sapele Power. The latter owns a 1,020-megwatt thermal power plant in Ogorode.

Afreximbanks loan will enable the company to revamp capacity and implement operational efficiencies at the plant. Eurafric is paying $201 million for Sapele Power, including $60 million in equity.

The pan-African bank said it “supported the transaction because it believed that a viable power sector was vital for facilitating trade since it drove production and enhanced the creation of a viable economy”.