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InfraCredit an institution that provides local currency guarantees to enhance the credit quality of debt instruments saw its profit surge by 84.2% in 2022 as total assets hit N86.4 billion.
Profit for the year increased to N6.34 billion on the back of a doubling of interest and investment income in the period, as well as foreign exchange gains which surged by 135%.
This was able to offset higher finance costs and operating expenses in the 2022 period. Its core Guarantee fee income remained robust as it rose 56% to N1.949 billion, a sign of healthy pipeline of operations.
Operation of InfraCredit which guarantees debt instruments issued to finance creditworthy infrastructure assets in Nigeria are necessary because long term capital required by infrastructure entities/projects to be commercially successful is not available from the domestic banking market.
InfraCredit’s guarantees act as a catalyst to attract investment interests from pension funds, insurance firms and other long-term investors, thereby deepening the Nigerian debt capital markets.
Shareholders of the company include: The Nigeria Sovereign Investment Authority with 31.79%, Infraco Africa Limited 31.79%, the Africa Finance Corporation (AFC), with a 30.24% stake and Leadway Assurance with 6.17%.
InfraCredit’s portfolio include fourteen projects that have reached financial close and other pipeline projects worth over N100 billion.