Infrastructure Credit Guarantee Company Limited (InfraCredit) has recently closed a $25 million equity investment from Africa Finance Corporation (AFC), the leading infrastructure development finance institution in Africa.
This automatically makes AFC, a share holder in InfraCredit together with the Nigeria Sovereign Investment Authority (NSIA). Also as a result of this investment, the Executive Director, Financial Services of AFC, Sanjeev Gupta, and treasurer/Senior Director of AFC, Banji Fehintola, will join InfraCredit’s Board of Directors.
Still on the concluded transaction, the Chairman of InfraCredit, and the Managing Director/Chief Executive Officer, NSIA, Uche Orji, said
“We are pleased to welcome AFC as a partner and stakeholder of InfraCredit, and we are extremely pleased that a respected, long-term oriented partner like AFC shares our views about the vast opportunities ahead for InfraCredit”.
About InfraCredit
InfraCredit was established in January by the NSIA in collaboration with Guaranty Co (a member of the private infrastructure development group).
Its aim is to provide local currency guarantees to improve the credit quality of debt instruments issued to finance creditworthy infrastructure assets in Nigeria that conform with its eligibility criteria. The company maintains an ‘AAA’ long-term national scale credit rating from Agusto & Co and GCR.
In November 2018, InfraCredit secured a €31 million worth of investment capital from KFW Development Bank in Europe for the aim of facilitating infrastructural development in Nigeria.
About AFC
AFC is an international institution established in 2007, by treaty between independent sovereign states. Its aim is to be the leading African institution in infrastructure financing on the continent, foster economic growth and industrial development of African countries, while delivering a competitive return on investment to their shareholders.
The Corporation has an investment grade rating of A3 (long-term issuer) and P-2 (short-term issuer) from Moody’s Investors Services.
In November 2018, AFC acquired a credit facility of $200 million 5-year loan and a $100 million 5-year stand-by facility from the Export-Import Bank of China (CEXIM).
