Source of funding | Amount | Percentage | |
TOTAL EQUITY | US$81 million | 23.35% | |
| Local equity (ARM, Larue, Hitech) | US$27 million | 7.78% |
| International equity (AIIF) | US$20 million | 5.77% |
| Mezzanine (Lagos State) | US$34 million | 9.80% |
REVENUE DURING CONSTRUCTION | US$81 million | 23.35% | |
TOTAL DEBT | US$185 million | 53.30% | |
| Local bank debt | US$59 million | 17.00% |
| International bank debt (Standard Bank) | US$75 million | 22.60% |
| Development finance (AfDB) | US$51 million | 14.70% |
TOTAL FUNDING | US$347 million | 100% | |
The funding structure for the project is: debt 53 percent, equity 23 percent, and revenue during construction 23 percent. There is a sovereign guarantee in place covering a termination scenario.
The AfDB was identified as a potential source of long-term financing and, together with Standard Bank, was able to offer a financial package that matched the long-term nature of the project revenues.
Furthermore, the AfDB and Standard Bank were able to structure a swap facility whereby the LCC's exposure to dollar-denominated obligations to the AfDB was significantly mitigated. AfDB participation was critical to this deal, without which neither Standard Bank nor the local banks would have participated.