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Nigeria seeks asset manager to help raise funding for InfraCo ~Sources

By on February 25, 2021 0 161 Views

Nigeria plans to hire an asset manager for its new Infrastructure Company InfraCo, designed to raise as much as N15 trillion for projects and to accelerate growth in Africa’s biggest economy.

The Central Bank of Nigeria (CBN) and its funding partners – Africa Finance Corporation (AFC). and state-owned Nigeria Sovereign Investment Authority  (NSIA)– are seeking proposals from companies to independently manage the infrastructure company’s capital-raising plan, Bloomberg reports quoting a person with knowledge of the matter.

President Muhammadu Buhari this month approved the government’s seed capital of N1 trillion for InfraCorp, as the company is known, along with some private investment. The company will help fund projects from roads to railways and power plants.

The fund manager will be responsible for coordinating the total equity capital and associated debt raise required by the company, according to the person. Asset managers seeking the role must have been active in infrastructure financing.

“We need to be innovative in our approach to developing our infrastructure in Nigeria,” CBN Governor Godwin Emefiele said in a text-message sent by an official from the institution. “We believe that InfraCorp will be a major game-changer in this regard.”

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PricewaterhouseCoopers, Boston Consulting Group, McKinsey and KPMG expressed interest in being transaction advisers on the deal, according to the person. Ukiri Lijadu and Co. and Kenna Partners were appointed legal advisers, the person said.

PricewaterhouseCoopers and KPMG didn’t immediately answer calls seeking comment on Wednesday, while calls to Ukiri Lijadu and McKinsey didn’t connect. Representatives at Kenna Partners and BCG couldn’t comment straightaway when called.

Africa’s most populous country plans to boost infrastructure investments to stimulate economic growth after exiting its second recession in four years in the fourth quarter. The nation needs at least $3 trillion over 30 years to close its infrastructure deficit, Moody’s Investors Service said in a November report.

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