Cameroon Secures CFAF 42 Billion from Banks to Support Nachtigal Hydro Project Payments
A banking consortium including Afriland First Bank, UBA, SCB Cameroun, and Access Bank aims to secure CFAF 42 billion for Nachtigal Hydro Power Company (NHPC) to prevent payment defaults. This funding follows a previous CFAF 20 billion raised and is critical as the standby letter of credit approaches depletion due to Eneo's payment defaults. The overall credit facility totals CFAF 100 billion, with CFAF 33 billion still needed.
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A major banking consortium is forming to secure CFAF 42 billion for Cameroon's Nachtigal Hydro Power Company (NHPC) amid a looming default risk. Afriland First Bank, UBA, SCB Cameroun, and Access Bank have submitted bids to join the revolving fund to ensure payment guarantees.
UBA leads with a CFAF 12 billion offer, while the others propose CFAF 10 billion each. Access Bank suggests a securitization mechanism with a CFAF 10 billion Treasury bond issuance. This funding will complement CFAF 20 billion already raised.
The total financing needed is CFAF 100 billion, with CFAF 33 billion remaining to reach this goal. Urgency arises as the standby letter of credit is near depletion due to Eneo's payment failures.
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