Indigenous player in the energy sector, Falcon Corporation Limited, has secured a N19.41bn debt facility from the Chapel Hill Denham Nigeria-managed Infrastructure Debt Fund.
According to a statement made available to our correspondent on Monday, the proceeds of the loan are earmarked for the development of a state-of-the-art 15,000 metric ton Liquefied Petroleum Gas storage facility and a dedicated jetty situated in Rumuolumeni, Saipem/Aker Base Road, Port Harcourt, Rivers State, Nigeria.
It was revealed that the project will be funded by debt obtained from NIDF and the Bank of Industry coupled with internally generated funds.
‘’The Project has now hit several critical milestones, with a recorded completion rate of 65 per cent as of October 2023. The progress achieved encompasses various phases of development, including the completion of the jetty and substantial advancements in shoreline protection, as well as various engineering, procurement, and construction activities and installations.
The Project is expected to be completed and commissioned by Q4 2024,’’ the company noted.
The Managing Director of the Company, Prof. Joe Ezigbo, on the development said, “At Falcon, we consider our investments in the gas industry as a national service first. This is why over the past thirty years, we have continued to expand our footprints within the industry, despite the various challenges within the environment. Gas development is our contribution to nation-building and we remain unrelenting in this regard.
“We positioned our LPG facility strategically in proximity to major Gas sources and navigable water routes. The Project is set to facilitate and enhance more direct procurement and distribution of LPG, which will dramatically lower conventional delivery and storage costs. Beyond economic gains, we anticipate significant social benefits including job creation, income growth, health improvements, and environmental sustainability as our customers and communities transition to cleaner fuel options on a larger scale.”
The Deputy Managing Director and Co-Founder of Falcon, Mrs. Audrey Joe-Ezigbo, emphasised that “As a progressive company, deeply committed to the growth and advancement of Nigeria’s domestic Gas industry, we are expanding our investments across the Gas industry value chain, from our traditional role in the downstream sector to our current midstream investments, and positioning for an intended upstream play.”
The Chief Executive Officer of Chapel Hill Denham, Bolaji Balogun, said, “Chapel Hill Denham is pleased to support the integrated LPG infrastructure in Rivers State as this will not only increase domestic LPG consumption but also help in achieving one of the critical sustainable development goals aimed at reducing carbon emissions, air pollution, and habitat loss resulting from the use of firewood for cooking by more than 30 million households. The Project is also in line with the Federal Government of Nigeria’s objective of increasing the adoption of LPG as auto fuel and a replacement of diesel for power generation.”
Falcon’s General Manager, Finance, Nelson Walter, in addressing the choice of debt provider, stated, “NIDF is renowned for providing debt financing with reasonable terms for impactful infrastructure projects. They have shown a depth of understanding of the imperatives for project success and offered a flexible long-term loan repayment structure for Falcon in alignment with this. We are extremely delighted to have partnered with NIDF on this groundbreaking Project. “
Vetiva Capital Management Limited and Chapel Hill Denham Advisory acted as the Financial Adviser on the transaction, while Detail Commercial Solicitors provided legal counsel.
