DRELT

Credit MemoTemplate

Structured template for credit committee submissions.

Expand each section to view required content.

  • ▸Project name, sponsor, and sector
  • ▸Business model (e.g., mini-grid, C&I solar, e-mobility)
  • ▸Transaction amount, tenor, and guarantee request
  • ▸Key risks and mitigants summary table
  • ▸Decision required (approval of InfraCredit guarantee)
  • ▸UBO disclosure and ownership structure
  • ▸Track record: number of operational sites, P&L performance
  • ▸Management and governance capability
  • ▸Financial strength: audited accounts, leverage, EBITDA
  • ▸Description of the project and scope
  • ▸Technical design (EPC/OEM, system size, useful life)
  • ▸Offtakers and contracts (PPAs, lease agreements)
  • ▸Expansion plan / pipeline of future projects
  • ▸Demand analysis and willingness-to-pay evidence
  • ▸Tariff structure and subsidy reliance
  • ▸Regulatory approvals/licences (NERC, state permits)
  • ▸Policy alignment with Nigeria's Energy Transition Plan
  • ▸Capital structure (Debt: Equity split)
  • ▸Uses and sources of funds
  • ▸Financial model: DSCR, IRR, breakeven point
  • ▸Base case, downside, and extreme scenarios
  • ▸Sensitivity analysis (e.g., 50% PUE uptake, grant delay)
  • ▸Exposure limits check vs InfraCredit thresholds
  • ▸Technical DD — EPC/OEM validation, capacity factors, O&M plan
  • ▸Legal DD — enforceability of contracts, land rights, permits
  • ▸Financial DD — stress test, subsidy reliance analysis
  • ▸ESG DD — IFC PS compliance, battery recycling, gender inclusion
Risk CategoryDescriptionMitigants
Construction RiskDelay in EPC/OEM delivery, cost overrunsContracted EPC with track record, warranties, performance bonds
Demand RiskLower consumption or delayed PUE uptakePhased rollout, anchor customers secured, sensitivity modelling
Regulatory RiskLicences/permits delayed or revokedNERC/state permits obtained pre-disbursement, legal DD
Financial RiskEquity shortfall, reliance on subsidiesBank evidence of equity, disclose grants, stress-test model
ESG RiskBattery disposal, weak gender inclusionRecycling plan, ESG KPIs, IFC PS compliance
  • ▸Execution of binding PPAs
  • ▸Proof of equity funding (bank statement)
  • ▸Subsidy disbursement confirmation
  • ▸Binding insurance policies
  • ▸Land title/lease registration
  • ▸Escrow and DSRA funding
  • ▸InfraCredit PMT recommendation (including lessons learned from NBC)
  • ▸CRO/Risk Division endorsement
  • ▸Decision request: approval of guarantee subject to CPs
  • ▸Financial model outputs
  • ▸Sponsor's historical financials
  • ▸Management CVs
  • ▸Exposure compliance tables
  • ▸ESG due diligence summary
  • ▸Abbreviations and glossary