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Nigeria: African Improvement Financial institution and Infrastructure Credit score Assure Firm Restricted signal $15 million settlement to reinforce infrastructure financing

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The African Improvement Financial institution (www.AfDB.org) and Infrastructure Credit score Assure Firm Restricted (InfraCredit) have signed an settlement for a $15 million subordinated mortgage facility to strengthen InfraCredit’s capital base and appeal to institutional traders’ assets to assist shut Nigeria’s infrastructure financing hole.

Lamin Barrow, Director Basic of the African Improvement Financial institution’s Nigeria Nation Division, and Chinua Azubike, CEO of InfraCredit, signed the settlement in Lagos on 14 June 2024.

The ability will enhance InfraCredit’s efforts to unlock extra long-term native forex financing by means of the capital markets for infrastructure initiatives, primarily by leveraging swimming pools of capital from pension funds and different institutional traders within the West African nation.

InfraCredit is a specialised Nigerian credit score assure firm that mobilizes long-term capital from institutional traders to help infrastructure initiatives, together with inexperienced and climate-aligned developments.

Barrow expressed the Financial institution’s satisfaction with this operation. “Our help to establishments similar to InfraCredit demonstrates the significance of selling revolutionary and scalable options to leverage swimming pools of capital from home institutional traders, and place native capital market as a viable various supply of long-term funding to bridge the continent’s big infrastructure deficit, he acknowledged.”

In his feedback, Azubike mentioned, “We’re delighted by the African Improvement Financial institution’s confidence in our enterprise mannequin, which has efficiently facilitated personal sector funding in impactful infrastructure initiatives and InfraCredit’s clear vitality roadmap that has accelerated inexperienced finance for climate-aligned infrastructure, fostering SME progress, job creation, sustainable vitality entry, and general financial improvement. Regardless of difficult market situations, we now have constantly demonstrated sturdy fundamentals, strong portfolio efficiency, a confirmed observe document, and profitability. The additional enlargement of our capital base by this facility will bolster our skill to help entry to long-term native forex home credit score for our quickly rising pipeline of infrastructure initiatives presently value over NGN 625 billion (US$ 430 million), fostering job creation and financial progress.”

Solomon Quaynor, Vice President for Personal Sector, Infrastructure and Industrialization of the African Improvement Financial institution Group, acknowledged, “The African Improvement Financial institution is happy to be offering extra capital to InfraCredit Nigeria. The success of InfraCredit has impressed the replication of its enterprise mannequin throughout the continent, a key a part of our technique for scaling up personal sector financing in Africa. That is evidenced by our help for the institution of the same establishment in Kenya protecting the East Africa area.”

The partnership advances a number of strategic targets beneath the Financial institution’s present nation technique for Nigeria, together with stimulating native forex bond market financing throughout key infrastructure sectors and enhancing financial diversification and competitiveness.

Distributed by APO Group on behalf of African Improvement Financial institution Group (AfDB).

Media Contact:
Olufemi Terry
African Improvement Financial institution Group
[email protected]

Technical Contact:
Peter Onyango 
Monetary Sector Improvement Division 
African Improvement Financial institution

In regards to the African Improvement Financial institution Group:
The African Improvement Financial institution Group (AfDB) is Africa’s premier improvement finance establishment. It contains three distinct entities: the African Improvement Financial institution (AfDB), the African Improvement Fund (ADF) and the Nigeria Belief Fund (NTF). On the bottom in 34 African international locations with an exterior workplace in Japan, the AfDB contributes to the financial improvement and the social progress of its 54 regional member states. For extra data: www.AfDB.org  


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