How InfraCredit Supports £10M Green Sukuk for Climate-Focused Infrastructure
In a significant move for Nigeria’s renewable energy landscape, InfraCredit has provided a credit guarantee for Prado Power Limited’s Green Infrastructure Forward Ijarah Lease Sukuk. This initiative, backed by a £10 million Climate Finance Blending Facility from the United Kingdom’s Foreign, Commonwealth, and Development Office (FCDO), is set to channel domestic institutional capital into vital solar energy projects for underserved communities.
The core of this pioneering deal is Nigeria’s first-ever blended local currency Green Sukuk, a Shari’ah-compliant financial instrument. By blending public climate funds with private investment, the structure is designed to de-risk clean energy ventures. InfraCredit’s “AAA”-rated guarantee enhances the sukuk’s credit quality, while subordinated first-loss capital from the UK facility lowers the overall cost of capital, making the project more attractive to investors and paving the way for a new class of climate-focused assets.
Community Impact and Sustainable Development Goals
The seven-year guaranteed sukuk will finance the development of four solar-hybrid mini-grids in Benue and Akwa Ibom states. With a combined capacity of 850 kWp, these installations will provide clean and reliable electricity to 15,801 households and small businesses that are currently off-grid. This direct impact is projected to create 242 jobs and mitigate approximately 893.53 tonnes of greenhouse gas emissions each year, contributing significantly to the UN’s Sustainable Development Goals for energy access (SDG 7), economic growth (SDG 8), and climate action (SDG 13).
Mr. Washima Mede, CEO of Prado Power, emphasized the project’s holistic approach. “This initiative is not just about energy access. It is also about creating jobs and improving livelihoods,” he stated. Beyond electricity, the project will power productive-use hubs, offering rural farmers access to equipment like threshers and de-huskers to boost agricultural efficiency.
A Collaborative Blueprint for Climate Action
Key stakeholders have hailed the transaction as a model for future green financing. The British Deputy High Commissioner in Lagos, Mr. Jonny Baxter, remarked, “This project underscores the critical role of distributed renewable energy in providing reliable energy access to underserved regions. It boosts economic activities and ensures a safer environment.” He noted the UK-funded facility’s crucial role in mobilizing local currency debt for off-grid solar projects.
The Rural Electrification Agency (REA) also lauded the initiative. Managing Director Mr. Abba Aliyu highlighted that the financing aligns with the agency’s strategy of leveraging innovative financial models to de-risk projects, calling it “a significant milestone in closing Nigeria’s energy access gap.”
For InfraCredit, the deal showcases a scalable solution. “We are proud to support innovative climate-related Islamic finance products that tackle these challenges while creating jobs and expanding energy access,” said CEO Mr. Chinua Azubike. The sukuk’s integrity is assured through its green certification by the Climate Bonds Initiative and verification by Agusto & Co., setting a high standard for sustainable investment in Nigeria’s journey towards universal electrification and its 2060 net-zero commitment.
Sources
- Nigeria: Infracredit Mobilises £10m Climate Sukuk for Solar Power
- Press release Archives – FSD Africa
- About us – InfraCredit
- [PDF] Unlocking Long Term Local Currency Infrastructure Finance in Nigeria
- [PDF] ANNUAL REVIEW – PIDG.org
- InfraCredit Mobilises Green Sukuk for Solar Powered Rural …
