Zenith Bank Plc, a foremost financial institution in Nigeria and French Development Agency (Agence Francaise de Development (AFD), operator of France’s bilateral development finance mechanism, have signed a US$100 Million power sector credit facility. The on-lending term loan being made available to Zenith Bank is to support new investments in the CAPEX (capital expenditure) of Distribution Companies (DISCOs) in the power sector in Nigeria.
The facility signing held on the occasion of the visit to Nigeria of the French President, on Saturday, May 14, 2016, it was witnessed by Presidents Muhammadu Buhari and Francois Hollande at the Aso Rock Villa, Abuja, during a bilateral session.
Chairman of Zenith Bank Plc, Mr. Jim Ovia led the Bank’s top executives while Mrs. Laurence Breton-Moyet, Chief Operating Officer and Member of the Executive Board from the AFD Headquarters, Paris, was the lead for the AFD team at the occasion.
Under the loan arrangement, 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 years—depending on project’s cash flow.
“Mr. Jim Ovia (Chairman of Zenith Bank) and Mrs. Laurence Breton-Moyet (COO of Agence Francaise de Development – AFD) signing a US$100 Million power sector credit facility, on Saturday May 14th, 2016, aimed at supporting new capital expenditure investment by Distribution Companies (DISCOS) in the Nigerian Power Sector.
Witnessing the event were President Muhammadu Buhari of Nigeria and President Francois Hollande of France.