NSIA Increases NBET’s Liquidity With $417.4m
The Nigeria Sovereign Investment Authority on Thursday announced the payment of a total of $417.46m to the Nigerian Bulk Electricity Trading Company Plc.
The transfer follows the expiry of the four years investment term.
The NSIA in a statement issued in Abuja said the $417.46m was transferred in three tranches made up of $8m (May 2016), $5.5m (August 2016) and $403.96m (July 2018).
It said the returned funds consisted of the principal sum of $350m allocated to the NSIA from the proceeds of the $1bn Eurobond issued by the Federal Government in July 2013 under a fund management agreement and the sum of $67.46m (net of fees) as interest and earnings over the investment period.
The statement quoted the Managing Director and Chief Executive Officer, NSIA, Mr Uche Orji, as saying, the authority had accomplished its goals of enhancing NBET’s liquidity position.
This, he noted, would enable the company to focus on its principal function of developing the electricity market.
He said, “The NSIA’s role as fund manager helped to safeguard NBET’s capital against market volatility and conferred the agreed financial benefits on the company.”
Also commenting on the transfer, the Managing Director/Chief Executive Officer, NBET, Dr Marilyn Amobi, said the company was pleased with the management of the fund over the last four years.
Amobi said, “The NSIA as a competent fund manager preserved the capital; thus, helped to promote NBET’s credit worthiness as an off-taker for grid injected electric energy in the Nigerian Electricity Supply Industry.”
The NSIA is a corporate body established by the Nigeria Sovereign Investment Authority Establishment Act 2011 and mandated to manage funds in excess of budgeted hydrocarbon revenues.