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HomeCompany NewsInfraCredit secures $15 mln AfDB investment to boost Nigeria's infrastructure financing

InfraCredit secures $15 mln AfDB investment to boost Nigeria’s infrastructure financing

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InfraCredit, a ‘AAA’ rated specialized infrastructure credit guarantee institution, has successfully secured a $15 million subordinated unsecured 10-year facility from the African Development Bank Group (AfDB).

This strategic partnership marks AfDB’s second investment in InfraCredit, following an initial $10 million facility in 2020.

Director General of the African Development Bank Group, Mr. Lamin Barrow, expressed the bank’s satisfaction with this operation during the signing ceremony.

“Our support to institutions such as InfraCredit demonstrates the importance of promoting innovative and scalable solutions to leverage pools of capital from domestic institutional investors and position local capital markets as viable alternative sources of long-term funding to bridge the continent’s huge infrastructure deficit,” Barrow stated.

The $15 million facility aims to strengthen InfraCredit’s capital base and support its mission to address Nigeria’s infrastructure financing gap.

This investment will bolster private sector financing for critical infrastructure projects across sectors such as power, renewable energy, telecommunications, healthcare, green housing, and transportation.

Following this facility investment, InfraCredit’s funded capital base will increase to $187 million (approximately N264 billion), underscoring AfDB’s confidence in InfraCredit’s robust business fundamentals and commitment to sustainable development.

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InfraCredit’s CEO, Chinua Azubike, highlighted the significance of the AfDB investment. “We are delighted by AfDB’s confidence in our business model, which has successfully facilitated private sector investment in impactful infrastructure projects and InfraCredit’s clean energy roadmap that has accelerated green finance for climate-aligned infrastructure,” Azubike said.

“Despite challenging market conditions, we have consistently demonstrated strong fundamentals, solid portfolio performance, a proven track record, and profitability.”

Over the past seven years, InfraCredit’s guarantees have facilitated access to N218 billion ($445 million) in local currency finance for 12 first-time issuers and over 20 infrastructure projects.

InfraCredit’s support has enabled Nigeria’s first 15-year green infrastructure bond and extended corporate bond tenors beyond market norms to 20 years.

Azubike further noted that the new capital would enhance InfraCredit’s ability to support access to long-term local currency domestic credit for a rapidly growing pipeline of infrastructure projects currently worth over N839 billion ($579 million), fostering job creation and economic growth.

“The further expansion of our capital base by this facility will bolster our ability to support access to long-term local currency domestic credit for our rapidly growing pipeline of infrastructure projects,” he stated.

By leveraging domestic capital markets, InfraCredit aims to deepen the local debt capital market, attract long-term investors, and foster economic growth, thereby playing a pivotal role in Nigeria’s infrastructure development and economic advancement.

(Edited by Oludare Mayowa; omayowa@globalfinancialdigest.com; Newsroom: +234 8033 964 138)

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