Africa Development Bank (AfDB) has reassured firms of its dedication to their expansion plans and fortification of their capital base through its homegrown institutional investment funds.
While announcing the bank’s endorsement of a $10 million unsecured facility given to InfraCredit, a Nigerian firm, Stefan Nalletamby, AfDB’s Director of Financial Sector Development, explained that the financial institution is dedicated to prepare homegrown institutional investment funds and invigorate non-sovereign local debt capital market advancement in Nigeria.
He said, “The Bank’s help will fortify the capital base of InfraCredit, supporting the expansion of the Company’s core business of guaranteeing of bonds securities issued to fund infrastructural projects.
“This at last assists with expanding private sector financing for critical infrastructure such as; energy, agribusiness, water, health and education, through local capital markets.”
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Chief Executive Officer of InfraCredit, Chinua Azubike, said, ‘’Despite the impact of COVID-19, and changes to macro-economic assumptions, we are pleased to have reached yet another milestone in our pursuit to strengthen our robust balance sheet and guarantee issuing capacity.
“Notwithstanding challenging market conditions, we have continued to demonstrate our strong fundamentals, solid underlying portfolio performance, proven track record and profitability.”
With the admission of AfDB to its capital structure, he explained that his company is confident of its continuing ability to deepen market penetration and support access to long term domestic credit for the growing pipeline of infrastructure projects that will create jobs and support local economic growth.