American Capital Energy & Infrastructure's Azura-Edo Power Project Receives $50 Million Financing Commitment from OPIC
August 5, 2014
(OPIC)
Washington, DC – American Capital Energy & Infrastructure (ACEI) announced
today that the Overseas Private Investment Corporation (OPIC), the U.S.
Government’s development finance institution, has approved up to $50 million in
direct financing to support construction and operation of the Azura-Edo power
plant project near Benin City in Edo State, Nigeria. The Azura-Edo power
project is a 459MW open cycle gas turbine power station that begins construction
in 2014 and represents the first phase of a potential 1,000MW power plant
facility.
The announcement was made at a signing ceremony between ACEI CEO and co-founder,
Paul Hanrahan, OPIC President and CEO, Elizabeth Littlefield, and the Managing
Director of Azura Power Holdings, David Ladipo, on August 5 at the first
U.S.-Africa Leaders Summit in Washington, DC. The three-day event welcomes
nearly 50 leaders from across the African continent to further strengthen U.S.
ties with one of the world’s most dynamic and fastest-growing regions. The
Summit focuses on trade and investment in Africa and highlights U.S. commitment
to Africa’s security, its economic and democratic development, and its people.
ACEI’s affiliate has committed to invest up to $130 million in Azura Power
Holdings Ltd., the company responsible for developing the Azura-Edo power
project, to fund both the first and second phases of the Azura-Edo power project
as well as future acquisitions and greenfield projects in Nigeria. In addition
to OPIC and ACEI, the international team of debt and equity investors for the
project include African and European infrastructure funds, development and
commercial banks and the Edo State government. The Azura-Edo power project is
the first new project-financed independent power producer in Nigeria in over a
decade.
“As the lead investor in Azura Power Holdings, we are excited to facilitate
OPIC’s critical participation in the Azura Edo power project,” said Paul
Hanrahan, CEO and co-founder of ACEI. “It is relationships with OPIC and other
development institutions that underpin ACEI’s strategy to create and grow power
companies in high growth markets such as Africa, Asia and Latin America.”
“OPIC’s participation in this project is a prime example of how we mobilize
private capital to support development in Africa and throughout the developing
world,” said Elizabeth Littlefield, OPIC’s President and CEO. “Chronic power
shortfalls in Nigeria impede growth and development, and OPIC’s support to ACEI
will help the Azura-Edo project move forward and contribute to Nigeria’s overall
energy capacity, which will help foster crucial economic advancement there.”
David Ladipo, Managing Director of Azura Power Holdings, noted that: “The United
States’ investment in the Azura project, represented by OPIC and American
Capital, is complemented by the advisory support given to our public sector
counterparts by United States Agency for International Development. These three
institutions have recognized the tremendous growth potential that exists in the
Nigerian Electricity Supply Industry and they have acted on this insight with
energy and alacrity. We welcome their vision, their partnership spirit, and
their audacity.”
“OPIC’s approval is another achievement for the Azura team, who, in conjunction
with their Nigerian government counterparties, have worked tirelessly on the
first greenfield independent power producer under President Goodluck Jonathan’s
power sector reform program,” said Lisa Pinsley, Director of Africa Investments,
ACEI. “The Azura-Edo power project’s suite of contracts are template-setting
for the industry and will unlock a growth in the power sector above and beyond
Azura’s first 459MW.”
ACEI is a partner of Power Africa, a United States Government initiative
launched by President Obama that is focused on supporting economic growth and
development in Africa by increasing clean and reliable access to electrical
power. As a partner of the initiative, ACEI is actively pursuing investments in
African power companies to originate, develop, finance and operate regional
energy infrastructure assets in West Africa, East Africa and Southern Africa,
which, over the next four years, could reach $800 million in total investment.
ABOUT AMERICAN CAPITAL ENERGY & INFRASTRUCTURE
American Capital Energy & Infrastructure manages investments in global
energy infrastructure assets, including power generation facilities, power
distribution and transmission networks, energy transportation assets, fuel
production opportunities and product and service companies focused on the power
and energy sectors. ACEI is part of American Capital, Ltd.'s (Nasdaq: ACAS)
("American Capital") asset management affiliate, American Capital Asset
Management, LLC. For further information, please refer to www.ACEI.com.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm
and global asset manager. American Capital, both directly and through its asset
management business, originates, underwrites and manages investments in middle
market private equity, leveraged finance, real estate, energy and infrastructure
and structured products. American Capital manages $19 billion of assets,
including assets on its balance sheet and fee earning assets under management by
affiliated managers, with $84 billion of total assets under management
(including levered assets). Through an affiliate, American Capital manages
publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital
Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating,
Ltd. (Nasdaq: ACSF) with approximately $11 billion of aggregate net book value.
From its eight offices in the U.S. and Europe, American Capital and its
affiliate, European Capital, will consider investment opportunities from $10
million to $750 million. For further information, please refer to www.AmericanCapital.com.
ABOUT OPIC
OPIC is the U.S. Government’s development finance institution. It mobilizes
private capital to help solve critical development challenges and in doing so,
advances U.S. foreign policy. Because OPIC works with the U.S. private sector,
it helps U.S. businesses gain footholds in emerging markets, catalyzing
revenues, jobs and growth opportunities both at home and abroad. OPIC achieves
its mission by providing investors with financing, guaranties, political risk
insurance, and support for private equity investment funds.
Established as an agency of the U.S. Government in 1971, OPIC operates on a
self-sustaining basis at no net cost to American taxpayers. OPIC services are
available for new and expanding business enterprises in more than 160 countries
worldwide. To date, OPIC has supported more than $200 billion of investment in
over 4,000 projects, generated an estimated $76 billion in U.S. exports and
supported more than 278,000 American jobs.
ABOUT AZURA POWER HOLDINGS LTD.
Azura is a world-class power development company that was created to focus on
the development, construction, acquisition and operation of power generation
facilities in Nigeria and over time, West Africa. Azura utilizes its project
development and financing skills, in addition to the capital and expertise of
its founder Amaya and its investor American Capital Energy & Infrastructure,
to develop and acquire large scale gas-fired Independent Power Plants in
Nigeria. For further information, please refer to www.azurawa.com.
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