The Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF) has raised NGN1.8bn ($4.6mn) to fund Havenhill Synergy’s construction of 22 mini-grids as part of the Nigeria Electrification Project.

NIDF is the first listed infrastructure debt fund in Nigeria and will provide Havenhill the long-term financing to partially fund the mini-grids, which will connect 70,000 people to a clean, reliable energy supply.

The country’s rural electrification rate is just 39%, according to government data.

In 2019, the International Monetary Fund (IMF) also estimated that a lack of access to reliable electricity costs Nigeria an estimated $29bn a year.

NIDF CEO Anshul Rai said that NIDF was playing a significant role in improving energy access in Nigeria.

“NIDF prides itself in being the leader in financing of clean energy and energy access projects in Nigeria and thus contributing to the achievement of UN’s sustainable Development Goals. In multiple projects such as Havenhill, our unitholders can see their capital in action and generating not only financial returns but also making a strong, positive impact on the daily lives of their fellow citizens,” he said.

He disclosed that financing of the project will be funded from the fund’s recently concluded Series-7 capital raise, which also involved the participation of the African Development Bank (AfDB).

“With the support of AfDB, NIDF is also implementing a comprehensive environmental & social management system for the fund and also supporting its borrowers [in adopting] the international best practices in the area of environmental and social sustainability,” he added.

The NIDF is a close-ended fund, domiciled in Nigeria and denominated in naira. The fund is structured to enable investors to access infrastructure asset classes, while providing benefits of predictable returns available from long-dated infrastructure debt investments.

Havenhill Synergy deploys smart solar mini-grids to commercially viable off-grid rural communities. In urban areas, Havenhill provides solar services to commercial and industrial (C&I) customers.

Havenhill is also electrifying 23 healthcare facilities under its Energising Healthcare Initiative in partnership with USAIDs’ Power Africa Off-Grid Project (PAOP) and United States African Development Foundation (USADF).