Nigeria Central Bank, SWF Seek Asset Manager for $35bn InfraCorp

The Central Bank of Nigeria (CBN), the Africa Finance Corporation (AFC) and the Nigeria Sovereign Investment Authority (NSIA) managers of the country’s Sovereign Wealth Fund (SWF), are requesting for expression of interest proposals from qualified asset managers active in the infrastructure sector to manage the newly created Infrastructure Corporation of Nigeria Limited (InfraCorp).

InfraCorp is a dedicated privately-managed infrastructure and industrial vehicle that seeks to harness opportunities for Nigeria’s infrastructure development by originating, structuring, executing and managing end-to-end bankable infrastructure projects.

President Muhammadu Buhari this month approved its establishment with an initial seed capital of N1 trillion, envisaged over time to grow to N15 trillion ($35 billion) in assets and capital.

The successful asset manager, according to the call for expression of interest seen by MoneyCentral will be responsible for establishing a General partner/Asset Manager organization, to perform functions that include:

• Developing consolidated business plan and financial model for InfraCorp and its subsidiaries
• Manage the day-to-day operations of the Asset Management business of InfraCorp
• Plan, lead and coordinate the promotion of InfraCorp and capital raising activities
• Provide end-to-end origination, execution, structuring, closing, portfolio management and exit/sell-down of investments
• Design the optimal capital structure of InfraCorp and its subsidiaries best suited to its investment objectives
• Lead negotiations of guarantees for InfraCorp, and procurement of strong ratings from credible international ratings agencies
• Manage Government and other relevant Stakeholders
• Procure approvals and negotiation of documentation for asset transfer process for select assets into InfraCorp and its appropriate subsidiaries
• Establish procedures, processes and controls appropriate for InfraCorp

Upon expression of interest by any potential asset manager, the CBN and other promoters of InfraCorp will share a detailed Request for Proposal document providing potential asset managers with the necessary information to prepare proposals in line with requirements.

The deadline for receipt of final proposals is 12 noon Nigerian time on 16 March 2021.

The initial seed capital for the entity will come from the Central Bank of Nigeria, the Nigerian Sovereign Investment Authority, NSIA, and the Africa Finance Corporation.

The board of Infra-Co will be chaired by the Central Bank Governor and include the Managing Director of the Nigerian Sovereign Investment Authority, President of the Africa Finance Corporation, as well as representatives of the Nigerian Governors Forum, and the Ministry of Finance, Budget and National Planning. The Board will also have 3 independent directors from the private sector.