Azura Raises $876m for 450MW Azura-Edo Power Plant

Azura Power Holdings Ltd said yesterday it had raised $876 million for its power plant in the southwest of Africa's most populous nation and that construction was set to commence.

Azura, along with its founder and majority shareholder Amaya Capital, said lenders for the independent power plant (IPP) in Edo state included Siemens Bank, Standard Bank, CDC and the International Finance Corporation, an arm of the World Bank.

"The $876 million transaction is the first of a new wave of project-financed greenfield IPPs currently being developed in Nigeria," said Azura in a statement.

"The financing of the Azura-Edo IPP involves US$190 million of equity and US$686 million of debt from a consortium of local and international financiers," it added.

The Azura-Edo IPP consists of a 450MW open cycle gas turbine power station and a transmission line connecting the power plant to a local substation and an underground gas pipeline connecting the power plant to Nigeria's main gas supply.

The company said the project represents the first phase of a 1,500MW power plant facility which is targeted to come on stream in 2017 and supply more than 12 million people in Nigeria.