NSIA , Guarantco Establish Infrastructure Credit Agency

The Nigeria Sovereign Investment Authority (NSIA) in conjunction with  Guarantco have floated the Infrastructure Credit Enhancement Facility (infcredit), a special agency dedicated for financing critical infrastructure.

Billed for operations from the second quarter of 2017, Chinua Azubike, has been appointed as Chief Executive Officer of InfraCredit, New Telegraph reports.

Stating these in a statement issued yesterday by NSIA Media Adviser, Titilope Olubiyi, it said InfraCredit has equity capital of $200 million, which composed of paid- in equity and second loss contingent capital contributed by NSIA and other institutional investors.

According to the statement, while Sovereign Fund Authority is staking $25 million of the paid in equity, with other investment interests to be sourced largely from institutional investors and international finance institutions, GuarantCo has executed a Callable Capital Funding Facility Agreement providing US$50million of the Contingent Capital and will act as lead arranger for a further US$50million to be sourced from international DFIs with high investment grade ratings, New Telegraph reports.

Conceptualized in 2014, InfraCredit will provide guarantees to enhance the credit quality of local currency debt instruments (mainly in the form of corporate/infrastructure bonds) issued by eligible entities (corporates, state governments) to finance creditworthy infrastructure projects in Nigeria.

Intended as a sustainable framework for stimulating infrastructure investments in key sectors of the Nigerian economy, its successful operation will foster the development of the Nigerian debt capital markets.

Incorporated as a private limited liability company based in Lagos, Nigeria, InfraCredit will run on a commercial basis guided by international best practices and local governance standards.

Its Board of Directors, will be comprise representatives of NSIA, GuarantCo, institutional investors and independent members, New Telegraph reports.

Source: New Telegraph