Infrastructure Credit Guarantee Organization Plc (InfraCredit), Nigeria’s ‘AAA’-rated infrastructure credit guarantee institution, has secured a US$50 million subordinated unsecured 10-year debt facility from the Worldwide Finance Corporation (IFC), a component of the World Bank Category.
The facility, which is fully committed, will be disbursed in two equal tranches of US$25 million each. It is expected to reinforce InfraCredit’s capital base and improve its capacity to help infrastructure projects whilst mobilising lengthy-term regional currency financing for key sectors of the Nigerian economy.
These sectors protect renewable energy, climate-smart agriculture, electronic infrastructure, telecommunications, healthcare, transportation and other beneficial and green-growth projects.
Beyond the financing itself, the operation underscores the growing institutional support for InfraCredit’s role in developing Nigeria’s infrastructure financing ecosystem and domestic investment markets.
IFC joins a network of development endorse institutions and strategic partners supporting InfraCredit throughout assorted forms of investment and uncertainty-sharing arrangements, including equity, subordinated debt, portfolio uncertainty-sharing, counter-guarantees, initial-loss finance, specialised financing facilities and technological assistance.
According to IFC’s Financial Institutions Group Leader for Africa, Aliou Maiga, the investment reflects IFC’s commitment to strengthening Nigeria’s infrastructure financing ecosystem and mobilising lengthy-term confidential finance.
“By supporting InfraCredit’s institutional capacity, we are helping mobilize domestic resources for infrastructure investments that can drive economic growth, job creation and sustainable development across key sectors of the Nigerian economy,” Maiga said.
He added that IFC was pleased to deepen its assistance alongside InfraCredit as the institution continues to play a catalytic role in developing Nigeria’s community capital markets.
InfraCredit Manager Executive Officer, Chinua Azubike, said strengthening institutional capacity had become increasingly necessary as the business’s operation pipeline expands and its financing solutions change.
“IFC’s investment reinforces that capacity and strengthens our ability to mobilise prolonged-term domestic capital for infrastructure,” Azubike said.
He added that the swap demonstrated continued confidence from the cross-border development support network in InfraCredit’s organization model, describing its different network of development partners as a competitive advantage.
The IFC investment is supported by the Universal Development Established Individual Sector Window Combined Fund Facility and the Concessional Capital Window.
Because commencing operations in 2017, InfraCredit has facilitated greater than N600 billion in prolonged-term regional currency financing across 28 infrastructure projects and supported 14 initial-time issuers in accessing Nigeria’s domestic debt finance advertise.
The organization has furthermore supported multiple promote milestones, including Nigeria’s opening 15-year green infrastructure bond, whereas enabling corporate bond tenors of up to 20 years.
InfraCredit-guaranteed transactions have attracted participation from domestic institutional investors, including 20 of Nigeria’s 25 Pension Sponsor Administrators, alongside assorted issues recording resilient desire.
The novel facility follows InfraCredit’s expansion of its domestic institutional shareholder base, listing on the NASD OTC Securities Swap and development of financing solutions that complement its main guarantee organization.
The procure is expected to additional fund InfraCredit’s investment capacity and assistance the mobilisation of enduring-term restricted finance for sustainable infrastructure development across Nigeria.
Source: InfraCredit secures IFC’s $50m facility for local currency infrastructure finance
