The banking structure designed to secure payments owed to Nachtigal Hydro Power Company (NHPC) is taking clearer shape, with four lenders formally expressing interest in joining the revolving fund set up around the facility, according to sources cited by Business in Cameroon.
Afriland First Bank, UBA, SCB Cameroon and Access Bank have submitted their positions, and the files have moved into credit committee review. The banks had two weeks to formally notify their final decision.
If their internal approvals are validated, the new commitments could total CFA42 billion. Afriland First Bank is considering CFA10 billion, UBA CFA12 billion, while SCB Cameroon and Access Bank are each looking at CFA10 billion.
Access Bank is also proposing a parallel security mechanism. The lender is offering to replenish the reserve account held at the Autonomous Amortization Fund (CAA) through an issue of Treasury Bonds (OTA) worth CFA10 billion.
A letter has already been sent to the finance minister and, barring last-minute changes, the terms are expected to be finalized at the Treasury in the coming days. The goal is to build a guarantee cushion to reassure lenders about the strength of the structure.
Financing round still incomplete
These new loans would add to an initial CFA20 billion already mobilized from the first lenders. The state previously completed an initial core round with CCA-Bank and Société Générale Cameroon, each contributing CFA10 billion.
In this new phase, CCA-Bank is also proposing to increase its participation by an additional CFA5 billion.
The overall facility totals CFA100 billion, in line with the credit agreement signed on November 25, 2025 between the government and the banks. The structure was arranged by Société Générale Capital Securities Central Africa as lead arranger, with Elite Capital Securities Central Africa as co-arranger.
The agreement provides that the CFA80 billion remaining after the first round can be provided by incoming lenders within 90 days of the first drawdown.
If the commitments go through, the financing round would reach around CFA67 billion, or 67% of the facility. This total would combine the expected CFA42 billion from the four banks in talks, the CFA20 billion already mobilized, and the extra CFA5 billion proposed by CCA-Bank.
Nearly CFA33 billion, or 33% of the financing, would still need to be raised to fully complete the CFA100 billion envelope.
Replacing a standby letter of credit nearing exhaustion
The revolving mechanism is meant to allow the state to regularly pay NHPC invoices — for the operator of the Nachtigal hydropower dam — without relying on the standby letter of credit (SBLC) initially provided under the project agreements, which is now close to being exhausted.
Repeated payment defaults by Eneo have led NHPC to trigger the SBLC for CFA42.63 billion, according to information reported by Business in Cameroon.
In the background, the government is seeking to prevent a payment default that could weaken the confidence of financial partners and, more broadly, the country’s credibility. Discussions are continuing with other financial institutions to complete the CFA100 billion facility.
Amina Malloum
