InfraCredit backs Nigeria’s green sukuk solar project with $12.5 million UK support

Oluwatosin Racheal Alabi -

Key Points

  • InfraCredit guarantees $12.5 million for Nigeria’s first green Sukuk-backed solar project.
  • The project will electrify 15,801 households and small businesses across underserved communities.
  • Prado Power will construct solar hybrid mini-grids, creating 242 jobs and cutting emissions by 893.53 tonnes.

InfraCredit, an AAA-rated infrastructure credit guarantee institution, has announced the launch of a $12.5 million Guaranteed Fixed-Rate Senior Green Infrastructure Sukuk. The sukuk will finance Prado Power Limited’s solar-powered mini-grid project in rural Nigeria, supported by the UK-funded Climate Finance Blending Facility (CFBF).

This 7-year sukuk represents a groundbreaking Shari’ah-compliant green finance model, blending local currency funding with international support to de-risk investments in renewable energy.

Solar mini-grids to electrify rural communities

The sukuk will fund the construction of four hybrid solar mini-grids in Benue and Akwa Ibom States, with a total capacity of 850 kWp. These grids are expected to electrify 15,801 underserved households and small businesses, create 242 jobs, and avoid 893.53 tonnes of greenhouse gas emissions annually.

The initiative aligns with Nigeria’s universal electrification goals by 2030 and its target of net-zero emissions by 2060.

CEO of Prado Power, Washima Mede, emphasized the socio-economic benefits:
“Through the InfraCredit-backed senior debt and the Facility, we are accessing long-term blended capital that will scale investments in mini-grids and productive use appliances for rural dwellers and smallholder farmers.”

A milestone for Prado Power and InfraCredit

Founded in 2014, Prado Power is a renewable energy company dedicated to delivering electricity to underserved areas. The company has deployed over 2 MW of solar PV systems and expanded renewable energy access across commercial, industrial, and residential sectors.

This project is part of InfraCredit’s Clean Energy Funding Programme (CEFP), which aggregates and de-risks domestic institutional investments for clean energy projects. InfraCredit CEO Chinua Azubike highlighted the significance of this initiative:
“Green Sukuk is emerging as a promising finance tool. We are pleased to develop innovative climate-related Islamic finance products that expand energy access for households and productive uses.”

The project, certified as green by the Climate Bonds Initiative and rated “AAA” by Global Credit Ratings, benefits from technical and financial support from the UK’s Foreign, Commonwealth, and Development Office (FCDO) and FSD Africa. The Rural Electrification Agency (REA) also plays a crucial role in implementation.

Strengthening Nigeria’s renewable energy framework

The British Deputy High Commissioner in Lagos, Jonny Baxter, underscored the project’s importance:
“This project demonstrates the importance of Distributed Renewable Energy in providing efficient and reliable energy access in unserved regions.”

About InfraCredit

Established in 2016, InfraCredit addresses financing constraints for infrastructure development in Nigeria by mobilizing local currency guarantees to attract institutional finance. Supported by institutions like the Nigeria Sovereign Investment Authority and the African Development Bank, InfraCredit facilitates long-term funding for power, clean energy, transport, and other critical infrastructure.

By financing projects like Prado Power’s solar mini-grids, InfraCredit advances Nigeria’s renewable energy sector, promotes socio-economic growth, and supports the transition to a sustainable energy future.