Actis’ Africa-focused renewable energy portfolio company is looking to acquire risk hedges to cover $220 million worth of exposures on its investment in a Mozambique-based energy producer.
Azura Power Holding, also backed by Amaya Capital, is hedging its exposures on its investment in Central Termica de Ressano Garcia (CTRG).
South Africa-based financial services company, Absa Bank, is also an investor in the company and is also paying for part of the risk hedge.
This insurance is against the risk of expropriation, war and civil disturbance, transfer restriction, and breach of contract– and has a 15 year-tenor.
The Multilateral Investment Guarantee Agency (MIGA) is providing the insurance.
Azura Power was setup in 2016 by Actis and Amaya Capital to back energy deals, across Africa.
Other shareholders in Azura Power include Africa50, having backed the company in 2019.
Lisa Pinsley is head of Africa, energy infrastructure at Actis.
Sundeep Bahanda, co-founder and partner at Amaya Capital worked on the 2016 deal.
Raza Hasnani is head of infrastructure investments at Africa50.
Headquartered in London, UK, Azura develops, owns and operates wind and solar plants across Africa.
The company operates power plants across Nigeria, Senegal, and Mozambique.
Azura Power’s current portfolio of assets in operation and construction has a total capacity of 576 megawatts (MW).
The company owns and operates CTRG, a 175 MW natural gas-fired power plant located in Mozambique.
Azura Power also owns and operates Azura Edo, a 461 MW gas powered power plant based in Nigeria-.
Created in 2016, Azura is headed by chief executive officer Alan Muir.