Olaniwun Ajayi LP acted as legal adviser to British International Investment plc (BII) on a US$7.5 million term loan to Odyssey Energy Solutions Procure I, Inc. (Odyssey). Odyssey is a technology company that works to accelerate energy distribution in emerging electricity markets. The loan will fund the deployment of mini-grids across Nigeria. The parties refer to it as the Financing.
What the British International Investment facility funds
The Financing supports equipment procurement for mini-grid developers. Those developers take part in the Distributed Access Through Renewable Energy Scale-up Program, known as the DARES Program. Equipment is the heaviest cost in a mini-grid project. In fact, it can account for up to 80% of total project costs.
That cost creates a bottleneck. Developers often hold grant approvals, yet they cannot move quickly on procurement. As a result, projects stall before construction begins. The BII facility addresses this gap directly. It gives developers the capital to buy equipment, and it positions them to draw down grant funding available under the DARES Program.
Why the transaction matters
The Financing signals BII’s continued confidence in Nigeria’s renewable energy sector. Moreover, it marks a step forward for structured financing that expands access to reliable and sustainable electricity. Mini-grids reach communities that the national grid does not serve well. Consequently, each project that reaches financial close widens electricity access in underserved areas.
The deal also fits a wider shift of development and domestic capital into Nigerian power. Our work on Nigeria’s largest naira-denominated revolving loan in the solar mini-grid sector reflects the same trend, and our note on the NGN4 trillion power sector issuance programme covers reform at the grid scale.
Olaniwun Ajayi LP is proud to have advised BII on this transaction. To discuss project financing or mini-grid development in Nigeria, please contact our energy and infrastructure team.