Vetiva Capital Management Limited (“Vetiva”) is pleased to announce the signing of a Memorandum of Understanding with Climate Finance Advisory Limited (“CFAL”) and the African Guarantee Fund West Africa (“AGF”) on the Green Energy Fund (GEF) Program.  The program seeks to leverage available Public and Private sector credit funds to facilitate access to, and flow of, flexible funding / finance to eco-friendly energy projects.  The Fund will focus on bankable, commercially viable and socially responsible renewable / clean energy generation and distribution.

Speaking on the agreement, Mr. Damilola Ajayi, Group Executive Director at Vetiva, stated that “the signing of this MOU is another important step in facilitating flow of funding towards bankable, commercially viable and environmentally friendly energy projects in Nigeria and, indeed, the rest of Africa. This does not only provide alternative capital deployment channels for investors but seeks to contribute to addressing the energy deficit in Nigeria”. 

Vetiva, in November 2018, announced the signing of a partnership agreement with Climate Bonds Initiative (UK) to develop a liquid green and climate bond market in Africa. This agreement, alongside Vetiva’s strategic partnership with Climate Finance Advisory and African Guarantee Fund West Africa (AGF), is in line with Vetiva’s commitment to make the African continent more attractive to capital flows, in a sustainable and environmentally friendly manner, necessary for long-term infrastructure projects. Vetiva and its partners are proud of their shared vision to not only channel long-term funding into Africa, but also do so whilst addressing the challenges posed by climate change. It is Vetiva’s firm belief that Africa is positioned to lead the climate change conversation globally, whilst deepening the continent’s capital markets.

Also speaking on the strategic partnership, Ms. Adidja ZANOUVI, Managing Director of AGF West Africa reaffirmed African Guarantee Fund’s commitment in promoting a sustainable and environmental friendly economic growth in Africa. She stated “In 2016, AGF introduced a Green Guarantee Facility geared towards increasing financing for climate change mitigation and adaptation projects. In line with this, AGF West Africa is pleased, to be part of this tripartite partnership as a partial guarantor to enhance access to finance for climate and green growth-oriented SMEs in Nigeria and West Africa at large”. 

Dr. Jubril Adeojo, Director, Chief Investment Adviser at Climate Finance Advisory Limited, speaking on the agreement, said “the ultimate aim of the tripartite partnership is to create green asset portfolio in excess of $100million over a period of 5 years. AGF will provide up to 50% partial risk guarantee to enable green energy project developers access up to 10 years long-term local currency concessional loans to implement their green projects. The green energy projects that qualify are captive power and mini-grid power projects where renewables and gas are preferred sources of energy. On the final note, we are glad that the program has come when Nigeria is strategically making laudable moves to attain its nationally determined contributions (NDCs) to the Paris Agreement on combating climate change.”

VETIVA is a Pan-African Financial Services Company incorporated in Nigeria and duly regulated and registered by the Nigerian Securities & Exchange Commission (“SEC”) to carry on business as an Issuing House and Financial Adviser. Also, the company, through subsidiaries, is registered to act as Fund/Portfolio Managers, Trustees and Broker/Dealer by the Nigerian SEC.   Vetiva has expertise working hand-in-hand with international advisers, having worked on a number of cross border transactions which include a dual listing on the Nigerian and London Stock Exchanges, listed GDRs for Nigerian Companies as well as other capital raising transactions with international components.

AFRICAN GUARANTEE FUND  is an AA- Fitch rated Pan-African non-bank financial institution. AGF contributes to the promotion of economic development, vital for prosperity, stability and poverty reduction in Africa through two lines of interventions:

  • Provision of partial guarantees to financial institutions to facilitate access to finance for Small and Medium-sized Enterprises. AGF offers three types of guarantees: Loan Guarantees, Resource Mobilization Guarantees and Equity Guarantees.
  • Provision of Capacity Development support to the Partner Financial Institutions to improve their ability to properly assess SME risks and to the Small and Medium-sized Enterprises to build their capacity for easier access to finance.

AGF West Africa is a subsidiary of the AGF Group and oversees the Group’s operations within the Economic Community of West African States (ECOWAS).

CLIMATE FINANCE ADVISORY LIMITED is an indigenous advisory firm with Pan-African outlook, poised with the strategic direction to crystallize the flow of various forms of intervention funds and investment required to spur the development of Africa’s infrastructure and critical economic sectors via climate finance methodologies. CFAL has expertise in the areas of climate finance, renewable energy technologies deployment, sustainable agriculture, and Blockchain deployment for the financial services sector.