Infrastructure Credit Guarantee Company Plc is strengthening its institutional capacity as its pipeline of infrastructure transactions grows, with the company securing a $50m subordinated unsecured 10-year debt facility from the International Finance Corporation.
A statement from the firm stated that the facility, which will be disbursed in two separate tranches of $25m each, is expected to strengthen InfraCredit’s capital structure and its ability to mobilise long-term domestic capital for infrastructure.
Commenting on the transaction, the Chief Executive Officer of InfraCredit, Chinua Azubike, said, “Building additional institutional capacity has been an important priority for InfraCredit as our transaction pipeline grows and our financing solutions evolve. IFC’s investment reinforces that capacity and strengthens our ability to mobilise long-term domestic capital for infrastructure.
“Equally important, this investment demonstrates the continued confidence of the international development finance community in InfraCredit’s business model. Our institution is supported by a diverse ecosystem of leading DFIs and development partners across multiple layers of our capital and risk-sharing structures, including subordinated debt, portfolio risk-sharing, counter-guarantees, first-loss capital and specialised investment facilities.
“That breadth of support is a significant competitive advantage and reflects the maturity and resilience of our institution. We look forward to building on this partnership with IFC as we work together to expand the flow of long-term capital into Nigeria’s infrastructure market.”
The facility will support infrastructure transactions across renewable energy, climate-smart agriculture, digital infrastructure and green growth, telecommunications, healthcare, transportation and other productive sectors of the Nigerian economy.
IFC’s Financial Institutions Group Director for Africa, Aliou Maiga, said, “This investment reflects IFC’s commitment to strengthening Nigeria’s infrastructure financing ecosystem and mobilizing long-term private capital.”
He added, “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. We are pleased to deepen our partnership with InfraCredit as it continues to play a catalytic role in developing Nigeria’s local capital markets.”
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