Afreximbank's FEDA obtain 5% stake in Geregu Power Plc

A 5% interest in the electricity-generating company Geregu Power Plc has been purchased by the Fund for Export Development in Africa (FEDA).

The impact development division of the Africa Export and Import Bank is called FEDA (Afreximbank).

Akinleye Olagbende, Geregu's secretary, provided information about the acquisition in a statement to the Nigerian Exchange Limited (NGX) on Wednesday.

The first energy generation firm (GenCo) to be listed on the main board of the NGX was Geregu Power Plc in October 2022.

“The purchase of the shares was concluded today the 21st of February 2023 with the purchase agreed in on the 21st of December 2022,” the statement reads.

Last year, FEDA declared that, subject to satisfactory due diligence and documentation, it had secured internal clearances to purchase a strategic minority position in Geregu Power Plc.

According to the bank, as part of its efforts to intervene in the African energy market, it strategically decided to support the continent's top energy platforms, particularly those that focus on alternative and transitional fuels.

Afreximbank continued by stating that it intends to support Geregu Power as a minority investor and collaborate with the company's present owners and management group to spur growth over the coming several years.