In a significant move aimed at bridging Nigeria’s substantial infrastructure deficit, InfraCredit, the nation’s premier domestic credit guarantor, has successfully listed on the NASD OTC Exchange Plc, securing a total valuation of $41 million. This milestone, bolstered by a $6 million investment from the UK government’s MOBILIST program, marks a pivotal step in mobilizing domestic capital for critical infrastructure projects.
The listing, which includes $17.7 million in new equity, aims to empower local institutional investors, such as pension funds and insurance firms, to participate in the nation’s burgeoning infrastructure sector. The Federal Government’s estimation of a $2.3 trillion investment need between 2021 and 2043 underscores the urgency of this initiative.
“This moment marks the beginning of a new chapter for InfraCredit,” stated Mr. Chinua Azubike, InfraCredit’s Chief Executive Officer. “We are pleased with the confidence reposed in us by our new domestic institutional investor shareholders alongside the UK government through MOBILIST and our transition to a listed public company with access to equity capital markets.”
InfraCredit operates by issuing naira-denominated guarantees, mitigating investment risks and enhancing the creditworthiness of infrastructure debt instruments. This mechanism has already facilitated a project pipeline exceeding $500 million. Now, with the added equity from the NASD OTC listing, the company is poised to significantly expand its guarantee capacity.
“InfraCredit’s success highlights the power and impact of long-term partnerships, and the UK via the Foreign Commonwealth and Development Office is proud to have played a key role,” said Mr. Jonny Baxter, British Deputy High Commissioner in Lagos. “This transaction illustrates the potential of public markets to mobilise domestic capital at scale.”
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The UK’s MOBILIST program’s investment also aligns with InfraCredit’s green growth strategy, aiming to steer its portfolio towards renewable energy projects. This focus on sustainability is crucial, given the global push for environmentally responsible development.
“By listing with the backing of MOBILIST, InfraCredit will enable local institutional investors to benefit from the growth opportunities presented by sustainable infrastructure development in their market,” continued Mr. Baxter.
Looking ahead, InfraCredit plans to explore a listing on the Nigerian Exchange (NGX), further solidifying its role in the nation’s capital markets. This ambition resonates with the UK’s ongoing partnership with NGX to facilitate investments aligned with the United Nations Sustainable Development Goals.
Established in 2017 by GuarantCo and the Nigerian Sovereign Investment Authority, InfraCredit’s mission is to unlock long-term, local currency infrastructure finance. This listing represents a critical step towards realizing that vision, enabling Nigeria to bridge its infrastructure gap while fostering sustainable economic growth.
This listing is more than just a financial transaction; it’s a testament to the power of collaborative partnerships in driving national development. By empowering local investors and focusing on sustainable projects, InfraCredit is setting a precedent for responsible infrastructure financing in Nigeria.
