Zenith bank and Â Agence Francaise de Development (AFD) Â have signed a $100m deal Â to better electricity services in Nigeria.
The $100m deal which is a power sector credit facility will support new investments in the CAPEX (capital expenditure) of Distribution Companies (DISCOs) in the power sector in Nigeria.
The signing was witnessed by Presidents Muhammadu Buhari and Francois Hollande at the Aso Rock Villa, Abuja, during a bilateral session on the 14th of May, 2016.
in the agreement, a maximum of US$50 million can be on-lent to any single borrower at single digit interest rate for a tenor of between seven and 12 years, with a moratorium of two to three-and-a-half yearsâ€”depending on the projectâ€™s cash flow.
The AFD facility will reinforce, rehabilitate and modernizeÂ the existing distribution networks, which is a prerequisite for the connection of new customers while ensuring the stability of the grid. The loan arrangement also provides for technical assistance and other advisory services, both to the benefiting DISCO and the partnering bank.