InfraCredit’s Guarantee Supports GLNG’s N11.85bn 10-year Series II Infrastructure Bonds

 Oluchi Chibuzor

InfraCredit, a ‘AAA’-rated specialised infrastructure credit guarantee institution has announced its guarantee of GLNG Funding SPV Plc’s N11.85 billion 10-Year Series II Senior Guaranteed Fixed Rate Infrastructure Bonds, due 2035 (the “GLNG Series II Bonds” or “Bonds”) under the N50 billion Debt Issuance Programme.

GLNG Funding SPV Plc is a special-purpose funding vehicle established by the promoters of Green Liquified Natural Gas Limited (“GLNG”) and Green Fuels Limited (“GFL”), together referred to as the “Company” as part of its capital-raising plan.

The Bond proceeds will be used to finance the construction of a mini-LNG plant with the capacity to liquefy 200,000 scm per day equivalent to 150 tons per day. The Company’s two (2) gas compression and distribution facilities in Ogun State make it the largest in Nigeria with approximately 10.5 million standard cubic feet per day (scf/day) capacity, while its LNG business and solar power initiatives are currently in development stage.

In a statement, the Group Managing Director of GLNG, Mr. Arundeep Sira stated: “We are excited about the impact this funding will have on Nigeria’s sustainable energy future, this project will not only enhance our natural gas infrastructure but also contribute to economic growth and environmental sustainability.”

According to the Chief Executive Officer of InfraCredit, Mr. Chinua Azubike, “It has been an impactful journey working with Green Liquefied Natural Gas Limited since 2019 from the project development phase with the support of USTDA, to its maiden debt issuance in the capital markets in July 2023 and now the second series of its guaranteed bond subscribed by our domestic pension funds. We are excited to continue to support GLNG in its next phase of growth as a diversified energy company integrating renewable energy sources into its energy mix which will reduce its levelised cost of energy alongside its commitment to carbon neutrality.

“The project upon completion, will create over 200 jobs, bolster local industries, and drive economic development, it re-affirms the commitment and appetite of domestic pension funds in financing well-structured and sustainable infrastructure assets, whilst also reinforcing the private sector’s ability to raise long-term local currency finance from local debt capital markets for infrastructure development.”