Access Bank agrees N140m solar power deal with LBS
Access Bank is to finance a one hundred and forty million Naira solar power project solution that will cater for sixty percent of the electricity requirement of the Lagos Business School under an initiative enabled by a French government development agency, ADF.
LBS, the only business school in Africa to make the Financial Times global ranking of top 50 business schools, has seen its operating cost jump 25% mainly on account of the soaring cost of diesel.
The agreement with Access Bank will lead to the establishment of a solar power solution in the region of 350khw and it is expected that the project which will come on stream by the end of June will significantly cut the dependence of LBS on diesel generators.
Implementation will be led by the Sustainable Use of Natural Resources and Energy Finance (SUNREF) which is part of a broader French government initiative to promote energy efficiency and renewable energy as well as the sustainable use of natural resources.
Charles Ivenso, Chief Operating Officer of LBS told BusinessDay that it is hoped that the projected will be expanded in a year or so to take care of 100% of the power need of the school. The financing from Access Bank is at 9 per cent, which is 300 basis points below the banks prime lending rate for renewable energy projects, BusinessDay learnt.
“We consider the financing terms offered by Access Bank to be the best,” said Ivensor, a chartered accountant who joined the LBS in 2003.
SUNREF Nigeria seeks to improve access to energy through improved access to affordable finance for renewable energy designed to help mitigate climate change, reduce carbon emissions, increase economic opportunities, improve employment and, ultimately, sustain development in Nigeria.
Developed by AFD in more than 30 countries, SUNREF work in Nigeria is hosted by the Manufacturers Association of Nigeria (MAN) and in partnership with UBA and Access Bank.
LBS is the first organisation in Nigeria to benefit from SUNREF’s platform through which it offers Nigeria’s private sector competitive loans and technical assistance for structuring their green investments so they can seize the opportunities of green finance..