Afreximbank buys 5% equity stake in Geregu Power for N12.5bn
The Fund for Export Development in Africa (FEDA) has acquired a 5 percent stake in Geregu Power Plc, an electricity-generating firm.
FEDA is the impact development unit of the Africa Export and Import Bank (Afreximbank).
Details of the acquisition were contained in a statement issued by Akinleye Olagbende, Geregu’s secretary, to the Nigerian Exchange Limited (NGX) on Wednesday.
In October 2022, Geregu Power Plc became the first electricity generation company (GenCo) to be listed on the main board of the NGX.
Recall that last December ,FEDA announced that it has received internal approvals to acquire a strategic minority stake in Geregu Power Plc, subject to satisfactory diligence and documentation.
FEDA is the development impact investment platform of African Export-Import Bank (Afreximbank) with the mandate of providing capital towards advancing intra-African trade, export development and industrialization in Africa.
As part of its intervention efforts in the Africa’s energy sector, FEDA has made a strategic decision to support leading energy platforms across Africa, including the renewables and transition fuels sectors.
Geregu Power, one of Nigeria’s leading power generation companies with a capacity in excess of 430 megawatts, is a highly strategic asset to realising Nigeria’s power sector roadmap.
FEDA aims to support the business as a minority investor and work with the current owners and management team to drive the expansion of the business over the next few years.
“The purchase of the shares was concluded today the 21st of February 2023 with the purchase agreed in on the 21st of December 2022,” the statement reads.
The bank said as part of its intervention efforts in Africa’s energy sector, it made a strategic decision to support leading energy platforms across Africa, including the renewable and transition fuels sectors.
Afreximbank added that it aims to support Geregu Power as a minority investor and work with the current owners and management team to drive the expansion of the business over the next few years.
