InfraCredit, an ‘AAA’ rated specialised infrastructure credit guarantee institution, yesterday, announced the equity investment by AIICO Insurance Plc. (AIICO).
With the equity investment, which represents five per cent of total share capital of InfraCredit, AIICO Insurance joins Leadway Assurance Plc. as the second private domestic institutional investor.
Further to this new equity investment, InfraCredit’s paid-in capital base will increase to US$175.14 million (NGN148.55 billion) translating to an aggregate guarantee issuing capacity of up to NGN742.77 billion (USD 875.7 million).
According to a statement, the equity investment will be part of InfraCredit’s core capital and will enhance InfraCredit’s guarantee issuing capacity to sustain InfraCredit’s ‘AAA’ credit rating.
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Speaking on the investment, CEO, AIICO Insurance, Mr Babatunde Fajemirokun, said, “This investment is the evolution of what we at AIICO Insurance believe will be a long-term partnership with InfraCredit. Over the past two years.
“AIICO Insurance has invested in InfraCredit guaranteed bonds and participated in novel financing arrangements promoted by the company to bring infrastructure investment to areas that have been significantly underserved.”
In welcoming AIICO as a new shareholder of InfraCredit, Mr. Sanjeev Gupta, Chairman of the InfraCredit Board of Directors said, “AIICO’s investment is in line with our vision of creating a strong partnership between the public and private sectors.
“This partnership aims to attract private sector capital for infrastructure financing in a sustainable manner. This investment marks another significant turning point and a significant milestone for InfraCredit, as we aim to increase private sector involvement in the ownership structure.”
Commenting on the new equity investment, Mr. Chinua Azubike, the Chief Executive Officer, InfraCredit stated: “The admission of AIICO Insurance, the second private domestic institutional investor in InfraCredit, reinforces the confidence in the sustainability of InfraCredit’s unique business model. AIICO’s equity investment further strengthens our core capital base and expands our guarantee capacity as we continue to act as a catalyst to attract domestic credit from pension funds, insurance firms and other long-term institutional investors into credit-worthy infrastructure projects.
“This equity investment from AIICO aligns with our sponsor’s strategic objective to broaden our investor base through private sector participation, thus expanding our capitalisation and strengthening our capacity to deepen market penetration.
“We are pleased to have AIICO as a shareholder, and we aim to strengthen our cooperation towards advancing sustainable finance for impactful Infrastructure projects in Nigeria.”
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