Investor confidence fuels financing for mini-LNG plant to boost Nigeria's power supply and offer cleaner energy alternative.
FCMB Capital Markets Ltd. has successfully spearheaded the issuance of GLNG Funding SPV Plc’s N11.85 billion 10-Year Series 2 Senior Guaranteed Fixed Rate Infrastructure Bond, which concluded in February. This significant achievement highlights the growing investor confidence in Nigeria's transition towards cleaner energy sources.
The bond issuance, undertaken by GLNG Funding SPV Plc and sponsored by Green Liquified Natural Gas (GLNG) as part of its strategic capital-raising initiatives, represents a crucial step in financing the construction of a state-of-the-art mini-Liquified Natural Gas (LNG) plant. This facility will boast a liquefaction capacity of 200,000 standard cubic meters of gas per day and is strategically designed to help bridge Nigeria’s existing power supply deficit. Furthermore, it will offer industries a more environmentally friendly and cost-effective alternative to traditional diesel fuel.
The successful issuance was underpinned by a robust credit guarantee from InfraCredit, an AAA-rated infrastructure credit guarantee firm, further bolstering investor confidence. The project is also anticipated to generate substantial employment opportunities, with over 500 direct and 2,000 indirect jobs expected, thereby contributing significantly to Nigeria’s sustainable economic growth objectives.
Ikechukwu Omeruah, the Managing Director of FCMB Capital Markets Limited, expressed his enthusiasm about the transaction, stating, “FCMB Capital Markets remains steadfast in its commitment to financing projects that actively drive the adoption of clean energy solutions and generate long-term positive economic impact within Nigeria. We deeply appreciate the trust placed in our expertise by GLNG and acknowledge the invaluable role played by InfraCredit and the investing community in enabling the successful conclusion of this pivotal transaction.”
As the adoption of natural gas gains momentum across Nigeria, a 2022 report by Clarke Energy indicates the significant potential for cost savings for manufacturers. The report estimates that manufacturers could achieve savings of up to 30% by transitioning from reliance on the national grid to gas power, and an even more substantial saving of up to 80% when compared to the costs associated with diesel fuel.
FCMB Capital Markets, a key subsidiary of FCMB Group, has established itself as a leading player in Nigeria’s capital markets. Over the past five years, the firm has been instrumental in raising over N3 trillion in debt and equity capital for numerous leading corporate organizations operating within the country, further solidifying its position as a critical enabler of economic growth and development.