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GEAPP and Chapel Hill Denham mobilise US$50M to boost renewable energy in Nigeria

Sticky | 7 June 2023 News
  • Local currency facility aims to deploy US$50M into Distributed Renewable Energy (DRE) projects across Nigeria
  • GEAPP to provide initial investment of US$10M, which will mobilise an additional US$40M from the Chapel Hill Denham Nigeria Infrastructure Debt Fund (NIDF)

Lagos| 6 June 2023 – The Global Energy Alliance for People and Planet (GEAPP) in collaboration with Nigerian investment firm, Chapel Hill Denham (CHD), has established a new local currency subordinated debt vehicle: the Energy Transition & Access Facility for Africa (ETAFA).

ETAFA is an innovative financing initiative, which will enable the deployment of US$50M to support distributed renewable energy (DRE) projects in Nigeria. GEAPP will contribute an initial US$10M, which will in turn mobilise an additional US$40M from the Chapel Hill Denham Nigeria Infrastructure Debt Fund.  ETAFA’s financing is structured as a Naira-denominated, low-cost long-term financing, which will directly contribute towards making DRE solutions more affordable, particularly for lower income consumers.

DRE is acknowledged to be the fastest and most cost-effective solution to accelerate clean electricity access to the African continent. While Nigeria is well positioned to reap the benefits of DRE, the lack of subordinated capital and local currency financing for developers is hampering the DRE sector’s growth. The inability to access long-dated local currency financing exposes DRE developers to losses due to currency mismatches between their revenues and borrowings. ETAFA will address these barriers and help unleash the full potential of DRE in the country.

“We welcome this support from GEAPP which will help Chapel Hill Denham with two of our strategic priorities,” said Bolaji Balogun, CEO of CHD. “Reducing the number of Nigerians without any access to electricity; and accelerating the adoption of renewable sources of energy.  With partnerships with global institutions such as GEAPP, CHD seeks to mobilise up to US$1 billion for clean energy projects in Nigeria and Africa by 2030. It is also targeting to reduce the number of people without access to modern energy in Nigeria and Africa by half in the same timeframe.”

“Renewable energy development is paramount for Nigeria to transition to clean energy and meet critical climate goals, while powering economic and social development” says Stefanie Fairholme, GEAPP’s Head of Investments. “GEAPP’s partnership with CHD aims to tackle the barriers to Nigeria’s clean energy transition by providing the de-risking capital needed to stimulate the financing of projects that bring clean electricity to, and promote the economic development and sustainable livelihoods of, underserved communities.”

This new partnership forms part of GEAPP’s broader impact goal to enable 4 million new mini-grid connections, reaching 20 million people, while creating 50,000 jobs in Nigeria.

About the Global Energy Alliance for People and Planet:
The Global Energy Alliance for People and Planet (GEAPP) is an alliance of philanthropy, governments in emerging and developed economies, and technology, policy, and financing partners. Our common mission is to enable LMIC’s shift to a clean energy, pro-growth model that accelerates universal energy access and inclusive economic growth, while supporting the global community to meet critical climate goals during the next decade. As an alliance we aim to reduce 4 gigatons of future carbon emissions, expand clean energy access to one billion people, and enable 150 million new jobs. With philanthropic partners, IKEA Foundation, The Rockefeller Foundation, and Bezos Earth Fund, GEAPP works to build the enabling environment, capacity, and market conditions for private sector solutions, catalyze new business models through innovation and entrepreneurship, and deploy high-risk capital to encourage private sector solutions, and assist just transition solutions. For more information, please visit www.energyalliance.org and follow us on Twitter at @EnergyAlliance.

Contact:
Eric Gay
+1 917 912 6190
eric.gay@energyalliance.org

About Chapel Hill Denham:
Chapel Hill Denham is one of the most trusted names in African financial services and is the leading independent investment bank in Nigeria, a leading investment manager and the leader in alternatives asset management. The firm’s funds and strategy are primarily focused on areas accretive to Nigeria and Africa’s economic development including Infrastructure and Climate, Real Estate including Student Accommodation and Affordable Housing, Gender led SMEs, Venture, Creative, Healthcare and Education. Chapel Hill Denham is a leader in financing of infrastructure and clean energy in Africa, with a solid track record of creating innovative, path-breaking investment and financing solutions. CHD seeks to lead Nigeria and Africa towards a more sustainable, prosperous future and through its funds and investment banking work, accelerating the continent’s energy transition journey.

Contact:
Michael Ajifowoke
+234 700 242 735 4455
majifowoke@chapelhilldenham.com

Chapel Hill Denham completes first-ever cross-border client trade through PAPPS

Sticky | 13 March 2023 News

The Nigerian Exchange Limited (NGX) and Ghanaian Stock Exchange (GSE) have successfully completed the first Pan-African Payment and Settlement System (PAPSS) client transaction between both West African countries. This trade, which is the first of its kind, was executed by Chapel Hill Denham Securities Ghana Limited (CHDG) and Chapel Hill Denham Securities Limited (CHDS).

PAPSS is a cross-border, financial market infrastructure enabling payment transactions across Africa and promises instant and simplified pan-African payments. It was designed by the Convergence Council of the West African Monetary Zone (WAMZ) as a private sector-driven approach for cross-border clearing and settlement with the African Export–Import Bank (Afreximbank) as a clearing and settlement agent. The system addresses the historic challenges of making payments across African borders, especially regarding exchange rates.

PAPPS was designed as a private sector-driven approach for cross-border clearing and settlement.

The historic payment was from CHDG through Stanbic IBTC Capital Limited (“the Bank”) via PAPPS, for the purpose of equity trading on the Nigerian Exchange Limited (the “Transaction”). The fund was received in Nigeria by the CHDS in Naira and used in the purchase of shares as requested by CHD Ghana.

This is part fulfilling for the West African Capital Markets Integration Council (WACMIC) whose overarching objective is to establish a harmonized regulatory environment for the issuance and trading of financial securities across the region. WACMIC comprises the region’s commissions and securities exchanges in WAEMU, Ghana, Nigeria, Sierra Leone, and Cape Verde.

“The process was seamless and time-friendly, save for a lot of documentation required by the PAPPS,” said Akeem Shadare, the Managing Director of Chapel Hill Denham Securities Limited, commenting on the transaction. “It is a welcome development that will enable cross-border transactions across continents and increase market activity. Unfortunately, this platform is yet to be implemented for use in securities trading by the Central Bank of Nigeria. We are hopeful that the Nigerian Government will be able to adapt same to enable stockbroking firms in Nigeria to leverage this opportunity.”

Read also: Private sector investment critical to infrastructural development in Africa – Bolaji Balogun

About Chapel Hill Denham

Chapel Hill Denham is a leading independent investment banking, securities trading, and investment management firm. The firm is Nigeria’s most trusted advisor, focused on providing unbiased advisory, execution, and investment services to corporations, governments, institutions, and individuals involved in investing in and developing Nigeria and Africa.

Chapel Hill Denham leads MTN Nigeria’s ₦115bn dual tranche bond issuance 

Sticky | 30 September 2022 News

Chapel Hill Denham is delighted to have acted as the Lead Issuing House / Bookrunner for the recently concluded N115 billion Series I Dual Tranche Fixed Rate Bond Issuance by MTN Nigeria Communications PLC (“MTN Nigeria”), Nigeria’s largest mobile network operator. The Transaction represents MTN Nigeria’s first outing under its new N200 Billion Bond Programme and third bond issuance – all led by Chapel Hill Denham – to date following its debut issuance in May 2021.

The bookbuild for the Series I Dual Tranche Bond Issuance – 4 Year Tranche A and 10 Year Tranche B – commenced on 15 September 2022 and closed on 21 September 2022, with a total value of N168.54 billion in bids received, representing a 1.68x oversubscription (of the intended N100 billion issuance). The Offer was well received with active participation from a diverse range of investors, including pension funds, insurance companies, asset managers, other financial institutions, and high net-worth individuals.

The Series I Tranche A and Tranche B Bonds were issued at a clearing coupon of 13.50% and 14.50% respectively. Of the total qualifying bids, the Company opted to issue a combined value of N115 billion across both tranches – N10.086 billion in the 4-year Tranche A and N104.914 billion in the 10-Year Tranche B. The successful Series I Bond issuance is a reflection of the continued investor confidence in MTN Nigeria and its management team, as well as the depth and resilience of the domestic debt capital market. MTN Nigeria intends to use the net proceeds of the offering to finance its network expansion, optimize working capital, and fund other corporate purposes.

Commenting on the Transaction, Lanre Buluro, MD – Capital Markets, Chapel Hill Denham stated that; “We are delighted to have led and successfully completed MTN Nigeria’s N115 Billion Series I Dual Tranche Bond Issuance under the new N200 billion Bond Issuance Programme, further deepening Nigeria’s capital markets. MTN Nigeria’s outstanding performance and strong credit story have underpinned what was an oversubscribed issuance. We are humbled to have led this landmark transaction and pleased to have, once again, been afforded this opportunity to deliver results for MTN Nigeria. Chapel Hill Denham remains committed to supporting MTN’s continued success.”

About Chapel Hill Denham

Chapel Hill Denham is a leading independent investment banking, securities trading, and investment management firm. The firm is Nigeria’s most trusted advisor, focused on providing unbiased advisory, execution, and investment services to corporations, governments, institutions, and individuals involved in investing in and developing Nigeria and Africa.

See other images from the signing ceremony on Friday, September 30, 2022, in Lagos below:

Chapel Hill Denham leads Nigeria’s $5.25bn Eurobond issuance

Sticky | 2 August 2022 News

Nigeria’s leading investment bank, Chapel Hill Denham, acted as the Domestic Lead Manager and Joint Bookrunner to the Federal Government of Nigeria’s $5.25 billion Eurobond issuance — a $4 billion triple tranche in 2021 and a $1.25 billion tap in 2022. 

It’s the first time that the Nigerian Sovereign will appoint a domestic firm as a Joint Lead Manager and Bookrunner, generating unprecedented domestic demand.  

Also Read: Chapel Hill Denham dominates AIHN’s 2022 Investment Banking Awards, wins 8 out of 10 categories

The Debt Management Office (DMO) on Thursday, 28 July 2022, listed the triple tranche of bonds at the FMDQ Securities Exchange and the Nigerian Exchange Limited, including a ₦250 billion Sukuk. 

Speaking at the ceremony, Bolaji Balogun, Chapel Hill Denham CEO said: “I’d like to thank the DMO, for trusting and appointing for the very first time, a Nigerian lead manager on a Eurobond transaction. What we did, together with the financial advisors, to deliver millions of dollars in domestic demand signifies why the decision you made was important and I hope it won’t be the last time.” 

Bolaji Balogun, CEO of Chapel Hill Denham at the listing ceremony on the FMDQ Securities Exchange on Thursday, 28 July 2022.
Bolaji Balogun, CEO of Chapel Hill Denham speaks at the listing ceremony on the FMDQ Securities Exchange on Thursday, 28 July 2022.

The events took place at the FMDQ headquarters and NGX trading ground in Lagos, featuring the management of DMO led by Director General Patience Oniha and other facilitators of the transactions. 

Also Read: Chapel Hill Denham named Nigeria’s Best Investment Bank at the 2022 Euromoney Awards for Excellence

About Chapel Hill Denham

Chapel Hill Denham has a simple and powerful model focused on investment banking and investment management. We are Nigeria and Africa’s leading independent investment bank and Nigeria’s leading alternative asset manager, as well as an impact investment firm. Our business is focused on areas accretive to Africa’s and Nigeria’s economic development with funds targeted to Renewable Infrastructure, Real Estate, Digital, and Financial Inclusion, Gender and SMEs, Healthcare, and Education. 

Chapel Hill Denham named Nigeria’s Best Investment Bank at the 2022 Euromoney Awards for Excellence

Sticky | 14 July 2022 News

Chapel Hill Denham was recognised as the “Best Investment Bank in Nigeria” at the Euromoney Awards for Excellence 2022; winning the award for the seventh time in 10 years. The Euromoney Awards remain the most coveted accolade for global banks and investment banks. 

This award comes just under a week after the AIHN Nigeria Investment Banking Awards, where the firm won 8 out of 10 awards in the most dominant performance ever by a Nigerian investment bank. 

Receiving the award, Bolaji Balogun, Chapel Hill Denham’s CEO said: “Humbled and thankful to win the Euromoney Awards for Excellence as Nigeria’s Best Investment Bank for the 7th time in 10 years. Proud of our team and privileged to work with the clients we do, and through the results, we deliver for them, we deliver sustainable impact for Nigeria and Africa’s future.”   

About Chapel Hill Denham

Chapel Hill Denham has a simple and powerful model focused on investment banking and investment management. We are Nigeria and Africa’s leading independent investment bank and Nigeria’s leading alternative asset manager, as well as impact investment firm. Our business is focused on areas accretive to Africa’s and Nigeria’s economic development with funds targeted to Renewable Infrastructure, Real Estate, Digital, and Financial Inclusion, Gender and SMEs, Healthcare, and Education. 

Chapel Hill Denham dominates AIHN’s 2022 Investment Banking Awards, wins 8 out of 10 categories

Sticky | 11 July 2022 News

Chapel Hill Denham, the leading independent investment banking, securities trading, and investment management firm, won 8 out of the 10 award categories under consideration at the 2022 Investment Banking Awards ceremony organised by the Association of Issuing Houses of Nigeria (AIHN) held on Thursday, 7 July 2022 at the Civic Center, Victoria Island, Lagos. 

The annual AIHN Investment Banking Awards ceremony recognises the achievements of investment banks who, over the course of the year, demonstrated excellence and achieved notable wins amongst their peers in the Nigeria Capital Markets.  

Chapel Hill Denham won the Best Public Sector House, Best Corporate Bond House, Best Private Company Bond House, Best Commercial Paper House, Best Bond House, Best Equity House, Equity Deal of 2021, and Best Investment Bank 2021; recording the most dominant performance by any firm, in the history of the AIHN awards. 

Commenting on the win, Bolaji Balogun, CEO of Chapel Hill Denham said: “These awards recognise our achievements over the past year and re-affirms our consistency in delivering results. The Firm’s success is a result of the confidence and trust reposed in us by our esteemed clients and partners, the SEC, NGX, CSCS, FMDQ, and other key stakeholders, as well as the exemplary efforts of the Chapel Hill Denham team, who are dedicated to delivering excellent services to our clients. We are immensely grateful to AIHN for the recognition of our efforts to deepen the Nigeria Capital Markets.” 

Kemi Awodein, MD of Investment Banking at Chapel Hill Denham added that: “We are honoured to have won these prestigious awards, which we believe re-affirm our commitment to excellence and recognise our leading role in the investment banking industry. Our determination to deliver best-in-class services to our esteemed clients is unwavering, as we could not achieve this milestone without their continued support by trusting us with their mandates. Our clients remain our focus.” 

About Us 

Chapel Hill Denham is a leading independent investment banking, securities trading, and investment management firm. The firm is Nigeria’s most trusted advisor, focused on providing unbiased advisory, execution, and investment services to corporations, governments, institutions, and individuals involved in investing in and developing Nigeria and Africa. The Firm actively promotes areas accretive to Africa’s and Nigeria’s economic development, targeting sectors such as Infrastructure, Energy and Renewables, Real Estate, SMEs, Digital and Financial Inclusion, Healthcare, and Education, among others.  

Bolaji Balogun calls for gender equality in corporate leadership at the 2022 Women Director’s Luncheon

Sticky | 27 May 2022 News

Chapel Hill Denham CEO, Bolaji Balogun, on Tuesday 24 May 2022, gave a keynote address at the annual Women Directors’ Luncheon themed “Virtually Unstoppable: Defining the New Inclusive Economy” organised by the Institute of Directors (IoD) Nigeria. 

The event, which was held at the Ecobank Pan Africa Centre in Victoria Island, Lagos, had in attendance high-profile figures in corporate Nigeria such as Karl Toriola, MTN Nigeria CEO; Kofo Akinkugbe, CEO of SecureID; Omobola Johnson, Chairman, Guinness Nigeria Plc; Olatomiwa Williams, Country Manager, Microsoft Nigeria & Ghana; Temie Giwa-Tubosun, CEO of LifeBank; Iyinoluwa Aboyeji, Founder & General Partner, Future Africa, as well as Bamidele Abiodun, the First Lady of Ogun State. 

“Pushing for female directors just makes good business sense. If you live in an economy where 51% of the population are women, then running forward without women in governance positions is as simple as you running with one hand or one leg tied behind your back,” Balogun said.  

“The keyword is ‘intentionality’. Our firm has existed for 6,251 days or just over 17 years, and every single one of those days, women have accounted for more than 50% of our employees and 40% of leadership positions. We’re the only firm in the Nigerian financial services industry with three female managing directors, all of whom are here today.” 

According to the Gender Equality in Nigeria’s Private Sector report by the International Finance Corporation (IFC) and the Nigerian Exchange Limited (NGX), Nigeria’s private sector is closing the gap in gender equality. 

The average percentage of women at the executive level in the country is 20%, compared to 17% globally while the average percentage of women at the board level is 23%, close to the global average of 25%.

Also Read: Bolaji Balogun talks marketplace shift 

“The only way we can get women into significant governance positions is by creating room from the early stages of management in a firm,” Balogun added. “It also means that when we get into significant leadership positions, as women and men, we have the responsibility to keep the door open behind us and bring many women through that door.” 

Falcon Corporation Limited has Secured a N19.41 Billion Debt Facility from NIDF

4 December 2023 Announcements, News

Falcon Corporation Limited (“Falcon” or the “Company”) has secured a N19.41 Billion debt facility from the Nigeria Infrastructure Debt Fund (NIDF). The proceeds of the loan are earmarked for the development of a state-of-the-art 15,000 metric ton Liquefied Petroleum Gas (LPG) storage facility and a dedicated jetty situated in Rumuolumeni, Saipem/Aker Base Road, Port Harcourt, Rivers State, Nigeria (the “Project”).

The Project, which has reached an advance stage, is being carried out in two (2) distinct phases, with the initial phase focusing on the construction of a 10,000 metric ton spherical tank (consisting of 2 tanks, each with a capacity of 5,000 metric tons), a dedicated jetty and other associated infrastructure, which is to be followed by the development of an additional 5,000 metric tons of storage at a later date.

According to the Managing Director of the Company, Prof. Joe Ezigbo, “At Falcon, we consider our investments in the Gas industry as a national service first. This is why over the past almost thirty years, we have continued to expand our footprints within the industry, despite the various challenges within the environment. Gas development is our contribution to nation building and we remain unrelenting in this regard. We positioned our LPG facility strategically in proximity to major Gas sources and navigable water routes. The Project is set to facilitate and enhance more direct procurement and distribution of LPG, which will dramatically lower conventional delivery and storage costs. Beyond economic gains, we anticipate significant social benefits including job creation, income growth, health improvements, and environmental sustainability as our customers and communities transition to cleaner fuel options on a larger scale.”

The Deputy Managing Director and Co-Founder of Falcon, Mrs. Audrey Joe-Ezigbo, emphasized that “As a progressive company, deeply committed to the growth and advancement of Nigeria’s domestic Gas industry, we are expanding our investments across the Gas industry value chain, from our traditional role in the downstream sector, to our current midstream investments, and positioning for an intended upstream play. We are fully aligned with the nations aspirations to leverage gas for industrialization, and our primary energy transition fuel, with the strong focus on its use for power and cooking. LPG’s characteristics, such as portability, high energy value, low emissions, and reduced carbon footprint, make it an ideal choice for cooking and other industrial uses. The Project aims to ensure the availability of LPG and deepen its market penetration and adoption within the catchment areas, contributing to the mitigation of ecosystem damage and greenhouse emissions caused by use of other traditional fuels.”

As stated by Mr. Bolaji Balogun, the Chief Executive Officer of Chapel Hill Denham, “Chapel Hill Denham is pleased to support the integrated LPG infrastructure in Rivers State as this will not only increase domestic LPG consumption but also help in achieving one of the critical sustainable development goals aimed at reducing carbon emissions, air pollution, and habitat loss resulting from the use of firewood for cooking by more than 30 million households. The Project is also in line with the Federal Government of Nigeria’s objective of increasing the adoption of LPG as auto fuel and a replacement of diesel for power generation.”

Funded by debt obtained from NIDF and the Bank of Industry (BOI), coupled with internally generated funds, the Project has now hit a number of critical milestones, with a recorded completion rate of 65% as at October 2023. The progress achieved encompasses various phases of development, including completion of the jetty and substantial advancements in shoreline protection, as well as various engineering, procurement and construction (EPC) activities and installations. The Project is expected to be completed and commissioned by Q4 2024.

Nelson Walter, Falcon’s General Manager, Finance, in addressing the choice of debt provider, stated, “NIDF is renowned for providing debt financing with reasonable terms for impactful infrastructure projects. They have shown a depth of understanding of the imperatives for project success and offered a flexible long-term loan repayment structure for Falcon in alignment with this. We are extremely delighted to have partnered with NIDF on this groundbreaking Project. “

Vetiva Capital Management Limited and Chapel Hill Denham Advisory acted as the Financial Adviser on the transaction, while Detail Commercial Solicitors provided legal counsel.

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