Infrastructure Credit Guarantee Company (InfraCredit) has secured a $15 million investment from the African Development Bank (AfDB). The credit facility comes in two phases.
AfDB signed off on two credit investments, one being a subordinated loan of $10 million and a risk sharing facility of up to $5 million.
Among the investors include the Africa Finance Corporation (AFC) and KfW, the German Development Bank.
Purpose of the credit facility: The loan investment will be used to support infrastructure financing through the domestic debt capital markets in Nigeria.
Previous investment secured by InfraCredit
In December 2018, InfraCredit secured a $25 million equity investment from Africa Finance Corporation (AFC). The investment by AFC automatically made the leading infrastructure development finance institution in Africa a shareholder in InfraCredit.
AFC became a shareholder with Nigeria Sovereign Investment Authority (NSIA). The investment also saw the Executive Director, Financial Services of AFC, Sanjeev Gupta, and treasurer/Senior Director of AFC, Banji Fehintola, joining InfraCredit’s Board of Directors.
InfraCredit was established by 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 for the aim of facilitating infrastructural development in Nigeria.
AFC is an international institution established in 2007, by a treaty between independent sovereign states. Its aim is to be the leading African institution in infrastructure financing, fostering 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).