The Infrastructure Credit Guarantee Company Limited (InfraCredit), a federal government-driven investment firm has made another move to expand as Leadway Assurance Company Limited announced an equity investment of $5 million in it yesterday.
InfraCredit which was established in 2017 and driven by the Nigerian Sovereign Investment Agency (NSIA) is an ‘AAA’-rated specialised infrastructure credit guarantee institution.
In an emailed statement on Wednesday, InfraCredit said the investment makes Leadway the first private institutional investor member of the shareholder group in InfraCredit.
Speaking on the investment, CEO, Leadway Assurance, Mr. Tunde Hassan-Odukale said, “InfraCredit is bridging a significant infrastructure gap in Nigeria through the mobilization of private capital.”
“Through the realization of the critical role an enabling infrastructure plays in the development of the social-economic conditions in our country, we see a strong alignment in Leadway and InfraCredit’s mission of supporting our clients in building a more resilient Nigeria,” he added.
Leadway is excited at the development impact of this investment and the positive trajectory of InfraCredit’s operations and strong outlook, Hassan-Odukale added.
“We look forward to working with InfraCredit to contribute to Nigeria’s infrastructure development and to fulfil our ESG-inclined investment principles.” Pursuant to this new equity investment, InfraCredit’s total capital base (paid-in and callable capital) will increase to $183 million (about N75.3 billion), translating to an aggregate guarantee issuing capacity of up to N376.4bn (about $915m) based on its current maximum capital leverage ratio of up to 5x allowable by its rating agencies,” he pointed out.
As the economy recovers from the challenges occasioned by the COVID-19 pandemic, InfraCredit would continue to deploy innovative credit enhancement solutions in mobilizing private sector financing for infrastructure projects in key sectors of the economy according to him.
Uche Orji, Chairman, Board of Directors and MD/CEO of NSIA, noted; “this investment aligns with our vision of creating an effective public-private-partnership, relevant for crowding-in private sector capital towards infrastructure financing in a sustainable way.”
He said the event represented “an inflection point and exciting milestone in diversifying the capital structure of InfraCredit, as we look forward to deepening private sector participation in the ownership structure.”
Commenting on the new equity investment, Chinua Azubike, the Chief Executive Officer, InfraCredit noted: “Leadway’s equity investment further strengthens our core capital and guarantee capacity, as we continue to execute on our mission of unlocking private capital for infrastructure development in a sustainable manner. More so, this equity investment from Leadway aligns with our strategic objective of diversifying the shareholder base towards our envisioned capital structure, with requisite participation from leading private institutional investors.”
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