North South Power ltd, UBA signs US$82m electricity power deal

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UBABy Abdulwahab Isa

United Bank for Africa (UBA) Plc has entered into a US$ 82 million financing deal with North South Power Limited, a strategic investor in the Nigerian Power Sector to finance the acquisition of the Shiroro Hydro-electric Power Plc Concession.
The funds, arranged by UBA Plc and UBA Capital Plc, facilitated payment of the balance of 75% of the acquisition cost to Bureau of Public Enterprises (BPE) whose payment deadline expired Wednesday, August 21, 2013
A statement by UBA Plc described the bank both lead bank and mandated lead arranger to the transaction, while UBA Capital is the mandated lead arranger, debt adviser and facility agent.
According to the Group Managing Director, UBA Plc, Mr. Phillips Oduoza, the seamless completion of the transaction by all parties involved is a reflection of the capacity of Nigerian banks to champion the financing of power reforms project across the country.
“This transaction is a milestone for the Bank and we are glad to be part of it. It is another demonstration of UBA’s commitment, appetite and capability for big ticket transactions. Importantly, it is our commitment to the Federal Government efforts in increasing capacity in the power sector. With our partners, UBA Capital Plc, we strongly believe that this financing will help in jumpstarting the much needed investment in the power sector,” Oduoza said.
The Group CEO, UBA Capital Plc, Rasheed Olaoluwa noted that the investment group has been an important partner in the privatization process as it is currently advising three out of the six generation companies recently conceded by the Federal Government of Nigeria.
Engineer Olubunmi Peters, Vice Chairman, North South Power Company Limited praised the commitment shown by UBA Plc and UBA Capital Plc in raising the funds. “The two institutions have again shown commitment to the power sector. With this fund, we are set to modernise the Shiroro Hydro Electric Power. Our company intends to add 600 megawatts into the national grid and add 200 megawatts in the third year,” Peters said.
The financing was a major milestone for UBA Plc, UBA Capital Plc, North South Power Company Limited and most importantly the Nigerian power sector as the Federal Government of Nigeria’s induced incentives to attract private sector participation across the sector is coming into effect.

The post North South Power ltd, UBA signs US$ 82m electricity power deal appeared first on Peoples Daily Newspaper, Nigeria.

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Source: People’s Daily Newspaper

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