CFAL $100 MILLION GREEN ENERGY FUND PROGRAMME

$100 MILLION GREEN ENERGY FUND PROGRAMME

About Green Energy Fund Programme (GEF-P)

A partial risk guarantee programme from the African Guarantee Fund (AGF) that will enable access to the available local currency concessional loans (also known as intervention funds) from the following local development banks via local commercial banks in Nigeria:

1.     Central Bank of Nigeria

2.     Development Bank of Nigeria

3.     Bank of Industry

The objective of the programme is to ease access to, and flow of, flexible funding / finance for clean energy developers in order to provide clean and dependable electricity to households as well as clusters of micro and small businesses, and industries.

FUND SIZE	·       N36BILLION ($100MILLION)
OBLIGOR TYPE(S)	·       Businesses and Industries
END-USER(S)	·       Individuals / home owners ·       Businesses ·       Cluster(s) of micro and small businesses in a market area(s) ·       Industries i.e. manufacturing, Agro-processors
TARGET MARKET	·       All regions in Nigeria
ELIGIBLE GREEN PROJECTS**	·       Hybrid Captive power plant ·       Hybrid Home Systems ·       Hybrid mini-grid / off-grid ·       Energy Efficiency for industries and SMEs
USE OF LOAN PROCEEDS	·       Purchase / procurement of energy asset components ·       Installation costs and overheads in line with bill of quantities ·       Project working capital in line with bill of quantities ·       Professional fees (to be determined by the local commercial bank) ·       AGF’s Guarantee fees (to be determined by the local commercial bank) ·       Insurance premium (to be determined by the local commercial bank)
TRANSACTION TYPES	·       Fixed monthly tariff Arrangement (Power as a Service) ·       PayGo (PAYG) Arrangement (Power as a Service) ·       Acquisition/Lease-to-Ownership Arrangement (Clean Energy Asset Ownership)
SINGLE OBLIGOR LIMIT / PROJECT SIZE	·       Maximum power generation of 2MW, or ·       Maximum of $5million USD (70% to 80% of the project cost/value*)
EQUITY CONTRIBUTION	·       Minimum of 20% to 30%
PRICING	·       Interest rate: Up to 12% per annum (the type of intervention fund will determine) ·       Processing & Management fees: to be determined by the fund provider
TENOR	·       Up to 10 (ten) years
MORATORIUM	·       Up to 18 months moratorium on principal and interest repayment ·       Unpaid interest during moratorium to be capitalized
ASSET VENDOR / PURCHASE	·       Reputable and Experienced Original Equipment Manufacturer (OEM) partner certified as satisfactory by the technical and financial advisor.
SECURITY AND CONTROLS	50% AGF’s Partial Risk Guarantee Cover of the transaction size Ownership of the Financed Energy Assets resides with the participating financial institution (PFIs) Insurance Cover (Theft & Peril) over the financed equipment noting the local commercial bank as the first loss payee Power Purchase Agreement must be executed

DEFINITION HYBRID SYSTEM

Hybrid system is defined as the blend or combination of any renewable energy technology and any between Fossil Fuels (fuel or diesel) and Gas.

Renewable energy technologies are:

1.     Solar

2.     Wind

3.     Micro-Hydro

4.     Biomass

5.     Energy Storage Systems

6.     Energy Efficiency  

Co-managers: Climate Finance Advisory Limited (CFAL) and Vetiva Capital Management Limited.