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TLG Capital and Wema Bank Pioneer Innovative $10m Climate Investment Deal in Nigeria

Staff writer
June 18, 2024, 11:19 a.m.
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TLG Capital, an alternative investment firm, has announced a $10m structured private credit facility for one of the country’s largest aluminum recyclers in Nigeria, in collaboration with Wema Bank, Nigeria’s financial institution and pioneer of Africa’s first fully digital bank, ALAT.

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TLG Capital, an alternative investment firm, has announced a $10m structured private credit facility for one of the country’s largest aluminum recyclers in Nigeria, in collaboration with Wema Bank, Nigeria’s financial institution and pioneer of Africa’s first fully digital bank, ALAT.

Isha Doshi of TLG, said: “The $10m investment by TLG Capital and Wema Bank revolutionizes Nigeria's aluminum recycling industry, setting a pioneering benchmark in sustainable finance and massive carbon footprint reduction.” 

“This groundbreaking partnership exemplifies cutting-edge innovation, leveraging local expertise and creative financing to drive transformative impact in Africa's industrial landscape.” 

This landmark climate finance transaction is set to transform the aluminum recycling industry in Nigeria, emphasizing TLG Capital's commitment to investing in the country despite prevailing currency and macroeconomic challenges. 

The five-year carbon footprint reduction of the project is estimated as the equivalent of removing 100,000 passenger vehicles off the road with approximately twelve times the dollar-for-dollar emissions reduction versus financing solar PV energy in the region. The plant will also enable 200 jobs for local Nigerians.

A core element of TLG's strategy involves forming strategic partnerships with reputable Nigerian national banks such as Wema Bank. 

The collaboration with Wema Bank is designed to help clients achieve maximum success, growth, and operational flexibility, leveraging Wema Bank’s local knowledge and expertise within the Nigerian financial services industry to ensure a smooth transition, sustained support throughout the investment lifecycle and maximal impact for this investment. 

To ensure success, TLG has implement a 100-day plan by placing a dedicated representative on ground. 

This individual is responsible for verifying financial information, monitoring adherence to the business plan, and conducting regular ESG (Environmental, Social, and Governance) and impact assessments on the company.

Wole Ajimisinmi, Wema Bank’s Executive Director of Lagos Directorate, said: “What Wema Bank and TLG have accomplished sets a new benchmark in African banking. Wema Bank has built a reputation for providing tailored financial solutions for our customers, providing optimum returns for all our stakeholders and driving impact across key areas which include Sustainability." 

“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.” 

“We remain committed to empowering the lives of our people and boosting economic growth, and we hope that more funds can approach the Nigerian market with the creativity that TLG has demonstrated. 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”.

Aum Thacker led the deal team at TLG Capital supported by Johnnie Puxley and Christian Rezek. Deal and transaction advisors included ThirdWay Partners, Jadara Capital, Wigwe and Partners, Better Finance and HT legal.

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