InfraCredit, a 'AAA'-rated specialised infrastructure credit guarantee institution, has announced credit enhancement of Prado Power Limited's Guaranteed Fixed-Rate Senior Green Infrastructure Forward Ijarah Lease Sukuk under a co-financing arrangement with the £10 million Climate Finance Blending Facility.

In a statement, it said the scheme was funded by the United Kingdom Foreign, Commonwealth and Development Office (FCDO), the fourth transaction under the Facility.

It said the programme seeks to aggregate, de-risk, and unlock domestic institutional investments to support eligible clean energy projects in Nigeria to contribute towards meeting the country's universal electrification goal by 2030.

"The Climate Facility provided subordinated first-loss capital that helped de-risk and reduce the capital cost of the project by unlocking InfraCredit's "AAA"-rated Guaranteed Fixed-Rate Senior Green Infrastructure Forward Ijarah Lease Sukuk that crowded in matching investments from domestic institutional investors in a solar mini-grid project for unserved markets, resulting in a blended affordable interest rate."

It is the fourth transaction under the Climate Facility and the first blended local currency Green Infrastructure Forward Ijarah Lease Sukuk for a Solar Powered Rural Infrastructure Project in Nigeria.

Speaking on the transaction, the Chief Executive Officer of Prado Power, Washima Mede stated that Prado Power is excited to be supported by InfraCredit and the Climate Finance Blending Facility towards the construction of four mini-grids and productive use hubs across communities in Benue and Akwa Ibom states.