Elektron Finance SPV Plc, a funding vehicle fully owned by Elektron Energy Development Strategies Limited, has launched a N200bn bond issuance programme and successfully completed its debut N4.64bn Series 1 Senior Guaranteed Fixed Rate Infrastructure Bond.
The 15-year Series 1 bond, which is guaranteed by Infrastructure Credit Guarantee Company Plc (InfraCredit) and rated “AAA” by both Agusto & Co. and Global Credit Rating Company, received full regulatory approval from the Securities and Exchange Commission (SEC).
According to a statement issued by the company, proceeds from the issuance will be channelled into financing the 30 MW Victoria Island Power Project. The project is being developed by Victoria Island Power Limited, a wholly owned subsidiary of Elektron Power Infracom, itself under the umbrella of Elektron Energy Development Strategies Limited.
The gas-fired embedded generation facility, situated in Lagos, will feature three 10 MW high-efficiency reciprocating gas engines supplied by Wärtsilä. It will also include a 12.6-kilometre dedicated electricity distribution network to serve the Victoria Island commercial district, one of Nigeria’s key economic hubs.
The company revealed that construction work on the power plant has already begun, while the distribution network is substantially complete. The project is expected to commence full commercial operations in 2026. When completed, it will provide a reliable and consistent electricity supply to businesses in Victoria Island, supporting economic growth and reducing dependence on unreliable grid power and expensive diesel generators.
Commenting on the development, Managing Director and Co-Chief Executive Officer of Elektron Energy, Tola Talabi, said the bond issuance was a testament to investor confidence in the company’s ability to deliver sustainable infrastructure projects. “This project is being implemented in partnership with Eko Electricity Distribution Company Plc and backed by capital from InfraCredit, ARM-Harith Infrastructure Fund, Nigeria Sovereign Investment Authority, Bank of Industry, FBNQuest Merchant Bank Limited, and Stanbic IBTC Infrastructure Fund,” Talabi said.
Talabi also highlighted the strong collaboration with financial and legal partners. Vetiva Advisory Services Limited and Anchoria Advisory Services Limited acted as lead issuing houses, while CardinalStone Partners Limited, ARM Capital Partners, FBNQuest Merchant Bank Limited, and Iron Global Markets Limited served as joint issuing houses. Custodian Trustees Limited acted as trustee for the transaction, while legal counsel was provided by Detail Commercial Solicitors and Templars.
Industry analysts say the project could be a game-changer for Lagos’ commercial energy landscape, providing stable power to businesses in an area that contributes significantly to Nigeria’s GDP. The investment also aligns with the government’s efforts to boost private-sector-led infrastructure development and improve electricity access in urban commercial centres.
Elektron Energy has positioned the Victoria Island Power Project as a model for future private investment in embedded power generation, especially in areas with high commercial demand. The partnership with InfraCredit and leading financial institutions is expected to enhance the project’s bankability and long-term sustainability.
