United Capital in partnership with United Bank for Africa (UBA) Plc, executed another landmark transaction in the power sector. The firm served as advisers on the structure by which the Nigerian Bulk Electricity Trading Company Plc (“NBET”) will now be able to provide Bank Guarantees to Generation Companies (“GenCos”) in line with the provisions of the Power Purchase Agreements and Power Purchase Activation Agreements executed between NBET and the GenCos.
The arrangement involves the assignment of Bank Guarantees, valued at N50.59 billion, to the GenCos. The Bank Guarantees will be held by Security Trustees, United Capital Trustees Limited – the appointed Security Trustee and will serve as payment guarantee to the GenCos.
