Home Energy assets OneWattSolar Completes N3 Billion Green Bond Issue

OneWattSolar Completes N3 Billion Green Bond Issue

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Lagos, July 2, 2021:
OneWattSolar (“OWS” or the “Company”) today announces the successful issuance of the first series of its 10 billion yen (approximately US $ 24.4 million) green bond issuance program , comprising 2 billion yen (approximately 4.9 million US dollars) 7- a one-year green bond issue (Tranche I) and a 7-year green sukuk issue (Tranche II) of one billion yen (approximately US $ 2.4 million).

The show is the first of its kind in several categories. In Africa, these are the first: Corporate Green Bond for Off-Grid Renewable Energy Project, Corporate Green Sukuk, and Corporate Joint Green Bond and Green Sukuk; and it’s the 13th Green Sukuk in the world.

The Bond is rated BBB, in accordance with standards set by DataPro Limited, a rating agency registered in Nigeria. TUV Nord Certification also provided a second opinion on the company’s green bond framework.

Comercio Partners Capital Limited (“CP Capital”), the investment banking subsidiary of Comercio Partners Limited, led the bond issue as a issuing house / financial advisor. The show was also supported by Marble Capital Limited as a Sharia advisor and Bloomfield LP as legal advisers. In addition, Financial Sector Deepening Africa (FSD Africa) has provided considerable technical assistance in support of the issue.

The show is in line 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 deliver more than 14 GW of off-grid solar power by 2030 across sub-Saharan Africa. In addition, the show reinforces the Company’s unhindered commitment to the United Nations Sustainable Development Goals (SDGs) and the Paris Agreement on climate change by leveraging its innovative and scalable business model that is based on consciously on a strategic partnership, advanced technologies and Big Data.
The Company intends to use the net proceeds of the issuance to purchase renewable energy assets necessary for the implementation of its portfolio of off-grid energy access projects in Nigeria, in line with the eligibility criteria (as defined in its green bond framework) and to support the adoption of best market practices and reporting standards to deepen the green bond market.

Comments on the show

Jubril Adeojo, PhD, co-founder and COO of OWS:

“This show allowed us to commercially deploy our two flagship products – CHIOMA being the hardware and hardware technology based on the Internet of Things, and AMINA being the advanced artificial intelligence software technology. Both products are strategically designed to offer a excellent service to our customers, as well as to ensure that the customer experience journey is smooth and memorable. It should also be noted that all of our partners are indigenous actors who work together to democratize, decarbonize, decentralize and digitize access sustainable energy to our reputable local businesses and households while creating many jobs for African youth and women.As a technology company, we look forward to developing and deploying new customer-centric products at the same time. to the issuance of more green bonds and sukuks, while we use this issuance to co to start the first leg of our million kilometer journey.

Steve Osho, co-manager and general manager of CP Capital:

“This is the first hybrid Green Bond and Green Sukuk issued by a company in Sub-Saharan Africa and at Comercio Partners Capital Limited we are delighted to be the primary issuing house for this historic issue. Our strategic relationship with OWS is part of our philosophy of value creation. Following the launch of the Nigerian Green Bond Market Development Program competently supported by FSD Africa in 2018, at Comercio Partners we have driven the essence of impact investing and the strategic alliance with OneWattSolar marks a key milestone in the company’s financing strategy. Therefore, issuing this Green Sukuk hybrid bond was a good call to reaffirm our commitment to green financing.

Akeem Oyewale, CEO of Marble Capital:

“Marble Capital is pleased to have lent its Sharia advisory skills to Green Sukuk’s first issue in Africa, and also grateful for the opportunity to expand Islamic finance asset offerings in the Nigerian market. . Using a sukuk in finance structures allows companies like OneWattSolar to tap into a growing asset class that has proven its worth around the world. OWS’s focus as an environmentally conscious company aligns with the principles of Sharia Maqosid and has helped bring investors to the deal. We expect more companies to take advantage of this short-term funding opportunity. “

Adedoyin Afun, Partner, Bloomfield LP:

“The advice on this historic show is testament to our multidisciplinary and integrated approach in providing excellent legal and regulatory support services. The depth of our capital markets, sustainable finance, Islamic finance, and our energy and natural resource practices was the cornerstone of this transaction. We see this show as the start of many more sustainable fundings in Nigeria. “

Evans Osano, Director, Financial Sector Deepening Capital Markets in Africa (FSD Africa)

“We congratulate OneWattSolar on its Green Bond and Green Sukuk issuance and are delighted to be a part of this journey. The issuance of this bond demonstrates the powerful role that green finance can play in establishing a resilient low-carbon economy in Africa and in resolving the continent’s energy crisis.

“Greening finance is essential to unlock sustainable growth. OneWattSolar has set a milestone in this regard, demonstrating the transformative potential of green Islamic finance, a part of the financial community that has always put social good at its heart.