REA collaborates with Development Bank OF Nigeria (DBN), Sign MOU on affordable debt financing:
As part of ongoing conversations between the Rural Electrification Agency (REA) and the Development Bank of Nigeria (DBN), including a virtual workshop on “Access to Finance” convened on the 2nd of March 2021, an MOU was officially signed on the 19th of August 2021 at the Rural Electrification Agency (REA), Abuja.
The partnership between Rural Electrification Agency of Nigeria (REA) and Development Bank of Nigeria (DBN) is aimed at providing affordable debt financing for REA projects, including the REF Call 2 projects, through selected commercial banks.
Generally, this is geared towards creating an avenue for mini-grid developers from the recently finalized REF Call 2, while engaging with financiers, development finance institutions as well as digital financial institutions within the solar space in Nigeria for the purpose of accessing debt financing
There were further engagements between REA-REF and DBN to leverage on their respective mandates, strengths, and technical competences, to collaborate on mutually beneficial basis for the provision of additional financing for the development of mini-grids across the country. These engagements led to discussions on a proposed partnership.
DBN, in its interest to promote Renewable Energy Finance, offers incentives to Participating Financial Institutions (PFIs) to increase lending to RE/EE as well as specialized green products/offerings for green finance to MSMEs and SCs. This will be done through strategic partnerships with other DFIs, Institutional lenders, State Governments and Government Agencies.
To this effect, DBN identified REA for strategic partnership on which an MOU was successfully signed by both institutions. While explaining the important role of sustainable financing to energy access, the MD/CEO of REA, Engr. Ahmad Salihijo Ahmad commended the leadership of DBN for deeming it fit to partner with the Agency to aid accelerated impact in the energy sector.
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