INFRACREDIT, a specialised ‘AAA’-rated infrastructure credit guarantee institution, has announced the successful completion of a $15 million subordinated unsecured 10-year facility with the African Development Bank (AfDB) Group.
The partnership marks the second investment by AfDB in InfraCredit following an initial $10 million facility in 2020.
Mr Lamin Barrow, Director-General of the AfDB Group, expressed the bank’s satisfaction with the operation and, at the time of the facility’s signing ceremony, said: “Our support to institutions such as InfraCredit demonstrates the importance of promoting innovative and scalable solutions to leverage pools of capital from domestic institutional investors and position local capital markets as viable alternative sources of long-term funding to bridge the continent’s huge infrastructure deficit.”
The $15 million facility strengthens InfraCredit’s capital base and supports its mission to bridge Nigeria’s infrastructure financing gap.
The facility will boost private sector financing for critical infrastructure projects across power, renewable energy, telecommunications, healthcare, green housing and transportation sectors.
Following the facility investment, InfraCredit’s funded capital base will increase to $187 million (N264 billion).
This investment by AfDB underscores its confidence in InfraCredit’s business fundamentals and commitment to sustainable development. By leveraging domestic capital markets, InfraCredit aims to deepen the local debt capital market, attracting long-term investors and fostering economic growth.
The investment aligns with AfDB’s support for InfraCredit’s Clean Energy Transition Strategy and Roadmap and its green finance achievements. It reflects AfDB’s commitment to promoting low-carbon development and climate mitigation by leveraging private-sector climate finance.
Over the past seven years, InfraCredit’s guarantees have facilitated access to N218 billion ($ 445 million) in local currency finance for 12 first-time issuers and over 20 infrastructure projects. InfraCredit’s support enabled Nigeria’s first 15-year green infrastructure bond and extended corporate bond tenors beyond market norms to 20 years.
According to the Chief Executive Officer of InfraCredit, Chinua Azubike, “We are delighted by AfDB’s confidence in our business model, which has successfully facilitated private sector investment in impactful infrastructure projects and InfraCredit’s clean energy roadmap that has accelerated green finance for climate-aligned infrastructure, fostering SME growth, job creation, sustainable energy access and overall economic development. Despite challenging market conditions, we have consistently demonstrated strong fundamentals, solid portfolio performance, a proven track record and profitability.
“Further expanding our capital base by this facility will bolster our ability to support access to long-term local currency domestic credit for our rapidly growing pipeline of infrastructure projects currently worth over N839 billion ($579 million), fostering job creation and economic growth.”
Mr Solomon Quaynor, Vice President for Private Sector, Infrastructure and Industrialisation at AfDB Group, said: “The African Development Bank is pleased to provide additional capital to InfraCredit Nigeria. The success of InfraCredit has inspired the replication of its business model across the continent, a key part of our strategy for scaling up private sector financing in Africa.
“This is evidenced by our support for establishing a similar institution in Kenya covering the East Africa region.”
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