Elektron Finance SPV Plc, a funding vehicle established by Elektron Energy Development Strategies Limited (EEDSL), is set to launch a Series 1 N17 billion Senior Guaranteed Fixed Rate Infrastructure Bond, maturing in 2040.
This bond issuance, which forms part of the company’s N200 billion Bond Issuance Programme, marks a significant step in advancing Nigeria’s energy infrastructure and sustainability goals.
The bond proceeds will support the development of a 30-megawatt (MW) gas-fired embedded generation plant in Victoria Island, Lagos, reinforcing Elektron Energy’s commitment to enhancing power generation and distribution across West Africa.
Strategic Investment in Energy Development
The company has already partnered with Eko Electricity Distribution Plc (EKEDP) to facilitate stable electricity delivery in key commercial zones.
This 15-year infrastructure bond is fully guaranteed by Infrastructure Credit Guarantee Company Plc (InfraCredit), which holds a prestigious “AAA” rating from Agusto & Co. and GCR.
The guarantee highlights the stability and credibility of the investment, positioning it as a low-risk opportunity for stakeholders.
Key Features of the Project
The Victoria Island Power Limited (VIPL) initiative will introduce:
- A 30MW gas-fired embedded generation plant, reducing reliance on diesel generators.
- A dedicated 5km distribution network, serving major commercial areas in Victoria Island.
- Long-term Power Purchase Agreements (PPAs) with prominent commercial off-takers and EKEDC.
It will also provide environmental and economic benefits, including lower greenhouse gas emissions, improved air quality, and increased economic activity.
Strengthening Nigeria’s Energy Security
With Nigeria striving for sustainable energy solutions, the bond will enable Elektron Energy to bridge electricity gaps, enhance energy efficiency, and contribute to the country’s economic growth.
- This initiative aligns with broader national efforts to accelerate infrastructure investments and promote clean energy adoption.
- Elektron Energy Development Strategies Limited continues to expand its energy portfolio, leveraging strategic partnerships and innovative financing models to deliver reliable electricity across the region.
As Nigeria embraces renewable energy transitions, this infrastructure bond signals progress toward a more sustainable and efficient power sector.
What you should know
The Nigerian energy sector is fast growing as the Rural Electrification Agency (REA) recently signed grant agreements with nine renewable energy companies to provide electricity access to 17.5 million Nigerians.
- This is the first collaboration under the World Bank-funded Distributed Access through Renewable Energy Scale-Up (DARES) project, following its official launch in 2024.
- The Managing Director of REA, Abba Aliyu, who spoke at the signing ceremony in Abuja on Monday, April 29, 2025, said the project aimed to electrify 17.5 million Nigerians by deploying 1,350 mini-grids.
