Green Finance for Sustainable Rural Telephony

The project will construct, install and commission solar powered base stations (sites) in 120 communities across 22 States in Nigeria. Hotspot is a telecommunication infrastructure and solar-powered rural telephony network provider, using renewable energy and climate-smart technology in operating telecom sites in off-grid rural parts of Nigeria. Under the Project, Hotspot established the special purpose…

Hotspot Network, Nigeria

Green Finance for Sustainable Rural Telephony

The project will construct, install and commission solar powered base stations (sites) in 120 communities across 22 States in Nigeria. Hotspot is a telecommunication infrastructure and solar-powered rural telephony network provider, using renewable energy and climate-smart technology in operating telecom sites in off-grid rural parts of Nigeria. Under the Project, Hotspot established the special purpose vehicle, Micropolitan Mobile Connectivity Limited to raise local currency finance from the debt capital markets, to build, own, and operate solar-powered mobile network base stations in select rural communities in collaboration with MNOs in Nigeria.

Financial Close Jun. 2023

Under Construction

₦955m Private Capital Mobilised

Green Certified

120 Sites

720 Jobs to be Created

8.34 Tonnes of GHG Emissions to be reduced

Geographical Location

Location Number Of Sites
North-West Sokoto, Kano, Kaduna, Kastina, Kebbi, Jigawa, Zamfara 71
North-Central Nasarawa, Plateau, Kogi, Niger, Benue, Abuja, Kwara 36
North-East Bauchi, Yobe, Taraba, Adamawa 10
South-West Ondo 2
South-East Ebonyi 1
120

The project was financed through a blended instrument, with the UK funded Climate Finance Blending Facility enabling a 7 year fixed rate local currency debt financing for the project by investing in the subordinated debt tranche, making it the first ever certified blended local currency green debt issue for a solar powered base stations project in Nigeria.

The Facility’s subordinated first loss capital helped de-risk and reduce the capital cost of the project by unlocking InfraCredit’s AAA rated guaranteed senior green bonds that crowded in first-time matching investments from 9 domestic institutional investors in a solar powered base stations for unserved markets.

The project will create up to 720 temporary and permanent jobs and avoid 8.34tCO2e of GHG emissions. Over the next 10 years, the project is expected to enable between 9 and 16 million new mobile subscribers and 6 million new data users.

The Hotspot Project complies with the Solar Sector Criteria of the Climate Bonds Standard, and its financing has been officially labelled and certified ‘Green’ by the Climate Bonds Initiative.

The Rural Telephony Project will have environmental benefits that align with the objectives of the Paris Agreement and Nigeria’s Nationally Determined Contributions (2021) to decarbonize the energy sector through a transition pathway, mitigating GHG emissions, and enhancing climate resilience which would simultaneously have a positive direct contribution to the United Nations Sustainable Development Goals (SDGs) 3, 4, 5, 6, 7, 8, 11, 12, 13 and 17 as identified in the Green Bond Framework.

Technical Support Assistance

funded the green certification costs for the project through its technical assistance facility for climate aligned infrastructure bonds established with InfraCredit. Domestic Institutional Investors

Rating Agency

Green Verifier

Project Videos

Solar Powered Rural Telephony Project in Nigeria

Hotspot is launching a project to build solar-powered base stations in 120 communities across 22 Nigerian states, connecting off-grid rural areas using renewable energy. They’ve established Micropolitan Mobile Connectivity Limited to secure local financing and partner with MNOs for these stations.

Energy