- InfraCredit issues Nigeria’s first Green Sukuk: The ‘AAA-rated Sukuk will finance four solar-hybrid mini-grids, bringing power to 15,801 unserved households in Akwa Ibom and Benue states.
- Partnership with UK’s FCDO: The £10 million Climate Finance Blending Facility co-financed the project, marking the fourth transaction under the Facility.
- Positive impact: The project will create 242 jobs, reduce 893.53 tonnes of greenhouse gas emissions, and boost renewable energy access in underserved communities.
InfraCredit has issued Nigeria’s first Green Infrastructure Forward Ijarah Lease Sukuk to support Prado Power Limited’s solar mini-grid project. The £10 million Climate Finance Blending Facility, funded by the UK’s Foreign, Commonwealth, and Development Office (FCDO), co-financed this transaction, marking the fourth deal under the Facility.
The Sukuk, a Shariah-compliant finance tool, forms part of InfraCredit’s Clean Energy Funding Programme (CEFP). This programme unlocks local investments for clean energy projects, helping Nigeria meet its 2030 electrification target and Sustainable Development Goal 7 for affordable, reliable energy access.
InfraCredit leveraged first-loss capital from the Climate Facility to reduce investment risks. This move enabled the issuance of the ‘AAA-rated Sukuk, which attracted strong interest from local institutional investors. The funds will drive the construction of four solar-hybrid mini-grids with a total capacity of 850 kW across Akwa Ibom and Benue states.
The project will bring electricity to 15,801 unserved households and small businesses. It will also create 242 jobs and cut 893.53 tonnes of greenhouse gas emissions. The Climate Bonds Initiative has certified the project as green, and Agusto & Co. verified the Sukuk as compliant with environmental standards. Global Credit Ratings awarded the Sukuk a ‘AAA’ rating.
Prado Power’s CEO, Washima Mede, highlighted the project’s impact on rural communities. “This investment helps us improve energy access, create jobs, and uplift livelihoods,” Mede said.
British Deputy High Commissioner in Lagos, Jonny Baxter, praised the project. “The UK-funded Climate Finance Facility plays a key role in mobilising green finance for off-grid solar projects in Nigeria,” Baxter said, noting the importance of distributed renewable energy in underserved regions.
Rural Electrification Agency (REA) Managing Director Abba Aliyu described the initiative as crucial for closing Nigeria’s energy access gap. “With over 15,000 connections, this project supports socio-economic growth and sustainable development,” Aliyu stated.
InfraCredit’s CEO, Chinua Azubike, emphasised the value of green Sukuk in financing Nigeria’s energy transition. “We’re developing innovative Islamic finance products that support job creation, expand energy access, and accelerate the energy transition,” Azubike said.
FSD Africa, a development agency strengthening financial markets in sub-Saharan Africa, provided technical and legal support to reduce the costs of issuing green debt. This initiative operates under the World Bank’s Nigeria Electrification Project, reflecting a collaborative push to expand clean energy in Nigeria.
InfraCredit, Prado Power, and the FCDO aim to address Nigeria’s energy challenges through green finance and contribute to the country’s sustainable development goals.