InfraCo Africa, a member of the Private Infrastructure Development Group has completed a $27 million equity investment into InfraCredit, a Nigerian-based specialized local currency infrastructure credit guarantee institution.
This corporate action was announced by Infracredit, through a verified Tweet, as seen by Nairametrics.
According to the tweet, the investment is aimed towards unlocking infrastructural finance in Nigeria, accelerating economic growth, and market development.
Nairametrics gathered that the investment made by InfraCo Africa through its dedicated investment vehicle makes it an equivalent shareholder alongside the Nigeria Sovereign Investment Authority (NSIA) and Africa Finance Corporation (AFC).
What they are saying
Commenting on the recent development, the CEO of InfraCredit, Chinua Azubuike said:
- “We are absolutely thrilled to welcome InfraCo Africa as an equity investor and stakeholder of InfraCredit in pursuit of our mission and strategic growth. We believe this equity investment marks a significant milestone and inflection point for InfraCredit in unlocking more infrastructure investments that will stimulate economic growth and market development.”
What you should know
- InfraCredit, ‘AAA’ rated credit enhancement facility was established in 2017 by GuarantCo and the Nigerian Sovereign Investment Authority (NSIA) with the support of Private Infrastructure Development Group.
- Nairametrics gathered that, in lieu of the new equity investment by InfraCo Africa, InfraCredit total capital base (paid-in and callable capital) will increase to $173million ( c.N68.3 billion), translating to an aggregate guarantee issuing capacity of up to N342 billion (c. $865 million), based on its current maximum capital leverage ratio of up to 5x allowable by its rating agencies.
Why it matters
The investment will further promote confidence in credit standing of InfraCredit, enhancing its ability to continue to increase private sector financing for infrastructure projects in key sectors such as transport, logistics, renewable energy, agriculture and healthcare.