Africa Finance Corporation (AFC) the continent’s leading infrastructure solutions provider, on Wednesday announced its critical role as Co-Financial Adviser on the successful close of the N728.9 billion Series 2 power sector bond transaction by NBET Finance Company Plc, under the Federal Government of Nigeria’s Presidential Power Sector Financial Reforms Programme (PPSFRP).
The programme is designed to resolve over a decade of legacy debt obligations within the Nigerian electricity supply industry.
This issuance follows the N501 billion inaugural Series 1 transaction completed in January 2026, where AFC played the same role of Co-Financial Adviser
The Series 2 close, which brings the cumulative issuance under the Programme to approximately N1.23 trillion, marks a significant milestone in the implementation of the N4 trillion Power Sector Multi-Instrument Issuance Programme.
The Presidential Power Sector Debt Reduction Committee (PPSDRC) oversees the Programme, with the Office of the Special Adviser to the President on Power provides technical leadership, implementing through the Nigerian Bulk Electricity Trading Plc (NBET)’s special purpose vehicle, NBET Finance Company Plc.
Proceeds from the Series 2 issuance will continue to enable the process of settling verified, overdue receivables owed to Power Generation Companies (GenCos) for electricity supplied between February 2015 and March 2025, further extinguishing legacy claims and injecting liquidity into the electricity industry.
Building on its critical role in Series 1, AFC provided comprehensive financial advisory services to the Federal Government of Nigeria on the Series 2 transaction, including support in negotiating and executing Settlement Agreements with additional GenCos, structuring of the Series 2 cash and non-cash tranches, and investor engagement ahead of the offer.
Working in partnership with CardinalStone Partners as co-Financial Advisers, the transaction reflects AFC’s deep local market expertise and its continued commitment to delivering complex, high impact policy advice and financial solutions that catalyse sector-wide reform.
Banji Fehintola, Executive Board Member and Head, Financial Services at Africa Finance Corporation, said, “Closing the second issuance within eight months of the inaugural series shows the Programme is working as designed verified legacy obligations are being converted into transparent, investable instruments, and domestic investors are backing that approach. AFC is proud to continue supporting the federal government in delivering reforms that restore liquidity to the power sector and lay the foundation for new investment into Nigeria’s generation capacity.”
The Series 2 transaction comes on the back of the full and timely payment of the first coupon and principal instalment on the Series 1 Bonds in July 2026, demonstrating the Federal Government’s commitment to honouring its obligations under the Programme and reinforcing the credibility of the capital markets approach to resolving legacy sector debt.
The issuance, which was oversubscribed, attracted strong demand from pension fund administrators, banks, sovereign wealth funds, and asset managers, further mobilising domestic long-term capital for critical electricity infrastructure in Nigeria.
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