By Our Reporter
The Wema Bank of Nigeria and TLG Capital, a leading alternative investment firm, has announced $10 million structured private credit facility designated for climate financing for one of Nigeria’s largest aluminium recyclers.
According to report gathered, TLG Capital is committed to investing in the country climate finance despite the prevailing macroeconomic challenges. The climate finance transaction is set to “transform” the aluminium recycling industry in Nigeria.
While TLG did not disclose the recipient of the funds, investigation reveals that Terra Aqua Environmental Consultancy Ltd is an environmental consultancy firm based in Ogun State, Nigeria.
Terra Aqua is also involved in metal recycling and manufacturing aluminium through its subsidiary Terra Alloy. The company owns a metal recycling plant in Ogun State, Nigeria, where it transforms metal and aluminium scraps into finished products.
According to TLG’s investment, the funds will help unlock “three Eiffel-Towers-worth of metal” which will be recycled over the next five years, with 95% lower CO2 emissions than primary-sourced aluminium.
The company also stated that this will create the largest and first-industrial-scale aluminium recycler in Nigeria.
The five-year carbon footprint reduction of the project is estimated to be equivalent to removing 100,000 passenger vehicles from the road, with approximately twelve times the dollar-for-dollar emissions reduction compared to financing solar PV energy in the region. The plant will also create 200 jobs for local Nigerians.
A key stakeholder in the investment, Isha Doshi of TLG said: “The $10 million investment by TLG Capital and Wema Bank revolutionizes Nigeria’s aluminium recycling industry, setting a pioneering benchmark in sustainable finance and massive carbon footprint reduction.
“This ground-breaking partnership exemplifies cutting-edge innovation, leveraging local expertise and creative financing to drive transformative impact in Africa’s industrial landscape.”
In his own remarks about the collaboration, Wema Bank’s Executive Director of Lagos Directorate, Wole Ajimisinmi said: “With this collaboration, TLG has become our surgical partner to assist with such intricate transactions that may be difficult for any Nigerian bank to do alone. This is exactly what we have been looking for to secure more flexible financial solutions directly to our customers. The company is one of our strongest customers and we are delighted to watch them embark on this next stage of their growth as we continue to empower their journey, all the way. We look forward to doing much more together with TLG.”
Experts opined that the investment aims to recycle enough aluminium over the next five years to match the volume of three Eiffel Towers, achieving this with 95% lower CO2 emissions compared to primary-sourced aluminium.
This significant reduction in emissions is equivalent to removing 100,000 passenger vehicles from the road.
In terms of dollar-for-dollar emissions reduction, this initiative is approximately twelve times more effective than financing solar PV energy projects in the region.