Husk, the world’s largest private-sector minigrid operator, has secured a ₦5 billion (approximately $3.2 million) revolving, local currency debt facility from United Capital Infrastructure Fund (UCIF). The revolving facility is the first Naira-denominated debt instrument of its kind and marks a significant step forward in accelerating Nigeria’s efforts to scale the community solar minigrid industry.
Announced on the sidelines of the Africa Climate Summit (ACS) in Addis Ababa, the facility was jointly developed by Husk and UCIF to support the deployment and scaling of solar minigrids across Nigeria.
Husk is the first minigrid developer in Nigeria to access this novel local currency facility from UCIF. For UCIF, this transaction aligns with its broader mandate to channel long-term local currency financing into projects that expand clean energy access and accelerate sustainable development across Nigeria and Sub-Saharan Africa.
The revolving loan has a tenure of 10 years, during which Husk expects to redeploy the capital twice. Initial deployments will be used to build out Husk’s standalone minigrid pipeline in Nigeria, with expansion plans to include interconnected minigrids and commercial and industrial (C&I) solar projects.
Uchenna Mkparu, Chief Investment Officer and Fund Manager of the United Capital Infrastructure Fund, said: “By providing affordable, long-term local currency debt to a market leader like Husk, UCIF is creating impact by enabling scalable, sustainable energy access for households, SMEs, smallholder farmers, and underserved communities across Nigeria. It is our goal to replicate this novel facility structure to deliver up to 100MW of clean power by 2030.”
Husk CEO & Co-Founder Manoj Sinha said, “Access to affordable, long-term, Naira-denominated capital has long been a critical bottleneck to scaling private-sector minigrids in Nigeria. This facility marks a new era for the industry and provides strong momentum for Husk’s Africa Sunshot initiative, under which we aim to build, own, and operate 1,000 minigrids in Nigeria.”
The United Capital Infrastructure Fund (UCIF) is a close-ended infrastructure fund, with a N150 billion program size. The Fund is managed by United Capital Asset Management Limited, a leading fund manager with over N1.2 trillion in assets under management and proudly sponsored by United Capital Plc. UCIF provides long-term local currency senior debt of up to 15 years to transformative infrastructure projects. The Fund is authorized to invest up to 80% of its total assets in Nigeria and up to 20% in Sub- Saharan Africa.
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