OneWattSolar (“OWS” or the “Company”) announced the successful issuance of the first series of its ₦10 Billion (circa US$24.4 Million) Green Bond Issuance Programme, comprising of a ₦2 Billion (circa US$4.9 Million) 7-year Green Bond Issue (Tranche I) and a ₦1 Billion (circa US$2.4 Million) 7-year Green Sukuk Issue (Tranche II).
The issuance is the first of its kind in several categories. In Africa, it is the first: Corporate Green Bond for Off-Grid Renewable Energy Project, Corporate Green Sukuk, and Corporate Joint Green Bond and Green Sukuk; and it is the 13th Green Sukuk in the world.
The Bond is rated BBB, in line with standards established by DataPro Limited, a registered Ratings Agency in Nigeria. TUV Nord Certification also provided Second Party Opinion on the Green Bond Framework of the Company.
Comercio Partners Capital Limited (“CP Capital”), the investment banking subsidiary of Comercio Partners Limited, led the bond issuance as Issuing House/Financial Advisers.
The issue was also supported by Marble Capital Limited as Shariah Advisor, and Bloomfield LP as Legal Advisers. In addition, Financial Sector Deepening Africa (FSD Africa) provided immense technical assistance in support of the Issue.
The issuance is consistent with the Company’s mission and mandate to accelerate and build on the achievements of Africa’s decarbonization pathway goals in the energy sector. Essentially, the Company’s goal is to provide over 14GW off-grid solar energy by 2030 across Sub-Saharan Africa.
Furthermore, the issuance reinforces the Company’s unfettered commitment to the United Nations Sustainable Development Goals (SDGs) and Paris Agreement on Climate Change leveraging its innovative and scalable business model that is consciously built on strategic partnership, advanced technologies, and Big Data.
The Company intends to allocate the net proceeds from the issue to purchase renewable energy assets required to implement its pipeline of off-grid energy access projects in Nigeria, in line with the Eligibility Criteria (as defined in its Green Bond Framework) and support the adoption of best market practices and reporting standards to deepen the green bond market.
Evans Osano, Director, Capital Markets of Financial Sector Deepening Africa (FSD Africa) said:
“We congratulate OneWattSolar on its green bond and green sukuk issuance and are delighted to be part of this journey. The issuance of this bond demonstrates the powerful role green finance can play in establishing a resilient low-carbon economy in Africa and forging a path out of the continent’s energy crisis.
“Greening finance is essential for unlocking sustainable growth. OneWattSolar has laid down a marker in this regard, demonstrating the tranformative potential of green Islamic finance—a part of the financial community that has always put social good at its heart.”