IFC provides $50m facility to expand InfraCredit’s Nigerian lending capacity
The International Finance Corporation has committed $50m in 10-year subordinated debt to Nigeria’s InfraCredit, with the funding to be delivered in two equal tranches. InfraCredit said the facility would strengthen its capital base and help mobilise long-term naira financing for infrastructure projects.
The International Finance Corporation has committed $50m in long-term subordinated debt to Infrastructure Credit Guarantee Company Plc, known as InfraCredit, to expand infrastructure financing in Nigeria. The 10-year unsecured facility was formalised in Lagos and will be provided in two equal tranches of $25m. The financing is intended to strengthen InfraCredit’s capital base and support its growing pipeline of infrastructure transactions.
InfraCredit provides credit guarantees for infrastructure-related debt transactions. It said the new capital would help it mobilise more long-term funding in naira and attract domestic institutional investment for projects in sectors including renewable energy, climate-smart agriculture, telecommunications, digital infrastructure, healthcare and transportation. The investment is backed by the International Development Association Private Sector Window Blended Finance Facility and the Concessional Capital Window.
InfraCredit said the transaction added to support from development finance institutions and other partners through equity, subordinated debt, risk-sharing arrangements, counter-guarantees and technical assistance. Since beginning operations in 2017, InfraCredit said it had facilitated more than N600bn in long-term local-currency financing for 28 infrastructure projects. It also said it had supported 14 first-time issuers in accessing Nigeria’s domestic debt capital market.
The company said its activities had included transactions linked to Nigeria’s first 15-year green infrastructure bond. InfraCredit-guaranteed transactions have also enabled corporate bond maturities of up to 20 years, according to the company. Its guaranteed bonds have attracted participation from 20 of Nigeria’s 25 pension fund administrators.
IFC Africa financial institutions director Aliou Maiga said the investment would help mobilise domestic resources for projects that could support economic growth, jobs and sustainable development. InfraCredit chief executive Chinua Azubike said the facility would improve the company’s ability to mobilise long-term domestic capital as its pipeline expanded.
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