Virtus, a decentralised energy consortium, has secured a five-year credit facility worth N446 million from Sterling Bank Plc. The financial support is in line with the Federal Government’s Energizing Economies Initiative which is supported by the Central Bank of Nigeria (CBN).
Sterling Bank provided the fund to Virtus for the deployment of distributed energy solutions across selected economic clusters like the market places, shopping centres, industrial facilities in Nigeria.
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Stable and constant electricity supply has been a major issue for companies in Nigeria, with Nigerian businesses estimated to have spent N5 trillion yearly on generators, maintenance, and fuel in order to keep business afloat, according to the Director-General of the National Association of Commerce Industry Mines and Agriculture, Ayoola Olukanni.
Virtus’ operation is sponsored by Solad and Rensource Distributed Energy Limited, an energy company that provides off-grid energy. Rensource delivers power through Microutilities, which is a type of energy service provider that builds a localized decentralized power grid for provision of energy and other value-added services, a statement on by the company disclosed.
Virtus Reaches Financial Close on Loan Facility from Sterling Bank to Power Markets. Virtus is a highly experienced decentralised energy consortium, sponsored by Rensource and Solad. #EEIPoweringMarkets #EnergizingEconomiesInitiative #REA #PoweredbyRensource #renewableenergy pic.twitter.com/QvK4BENgHc
— Rensource (@rensourceenergy) July 22, 2019
PRESS RELEASE: Decentralized Energy Developer – Virtus Reaches Financial Close on Loan Facility From Sterling Bank To Power Markets Under The FGNs Energizing Economies Initiative.
#EEIPoweringMarkets #EnergizingEconomiesInitiative #REA #PoweredbyRensource #renewableenergy pic.twitter.com/qcLLfFTbOm— Rensource (@rensourceenergy) July 22, 2019
Reacting to the fund secured by Virtus, the Managing Director of Rensource, Ademola Adesina said;
“This is indeed a significant achievement for Virtus that will further facilitate development financing in the renewable energy sector. It was only possible because government and the private sector collaborated to address financing challenges for off grid projects.”
Also, the Managing Director of Sterling Bank, Abubakar Suleiman, said the bank’s quest to lead the commercialization of renewable energy aided the investment in Virtus.
“At Sterling we believe that the answer to power generation is a multiplicity of options and we want to be at the forefront of the commercialization of renewable energy. Our involvement in the Virtus transaction which provides N446 million in development financing demonstrates our commitment to improving the capacity of off grid private sector developers for power generation. We hope that this paves the way for more financing to the sector.”
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About Virtus: Virtus Energy Solutions Limited is an Asset Holding Company sponsored by Rensource Distributed Energy Limited and Solad Holdings Limited. The company is implementing the Decentralized Energy Programme using high capacity stand-alone solar technology. Rensource has successfully implemented the first phase of Sabon Gari Market, while construction is ongoing in 6 other markets – Iponri – Lagos, Edaiken – Edo, NEPA 1, NEPA 2, Isikan – Ondo, and Ita Osun – Ogun.
Additionally, planning is well underway to power – Kantin Kwari – Kano, Gbagi – Oyo and Eriwe Fish farm – Ogun.
