Mainstream Energy Solution Limited ahead of the September deadline given to investors in the power sector to pay up the balance for the entities they intend to buy, has signed a $170 million medium term syndicated acquisition facility for the purpose of part-financing the concession of Jebba Power Station and Kainji Power Station, both of which are owned by Kainji Hydro Electric Plc.

The syndication was fully underwritten by Guaranty Trust Bank Plc which also acted as mandated lead arranger on the transaction, while Africa Finance Corporation (AFC) acted as co-mandated lead arranger.

The concession for Kainji Hydro Electri Plc, which is one of the 18 unbundled successor companies of the Power Holding Company of Nigeria plc, was awarded to Mainstream Energy Solutions Limited under the privatisation process and incorporates the right to design, construct, operate and maintain the two power plants.

Speaking at the official signing ceremony in Lagos, Sani Bello (rtd), chairman, Mainstream Energy Solutions Limited, said the financing represents an important milestone for the company in its bid to play a key role in the power sector reform initiative of the Federal Government.

Sani Bello expressed immense appreciation to Guaranty Trust Bank Plc for and AFC for providing the required financing to support the company’s vision to manage and restore the nation’s foremost hydro power plants, also acknowledging the significant contribution of the Federal Government of Nigeria, the Federal Ministry of Power, the National Council on Privatisation, the Bureau of Public Enterprises, and the regulatory agencies that have together created an enabling environment for this acquisition.

Commenting on the deal, Segun Agbaje, chief executive officer of Guaranty Trust Bank Plc, said the financing indicate the lender’s belief in, and support for, the ambition and the long term growth of the company, and by extension, the growth of the Nigerian power sector to further advance of  Nigerian economy.