InfraCredit, a ‘AAA’-rated specialised infrastructure credit guarantee institution, has announced the successful equity investment by the UK Government-backed MOBILIST programme, alongside other institutional investors, further strengthening its institutional shareholder base following the completion of its equity private placement.
This strategic investment, it said in a statement, marks a major milestone in it’s journey, reinforcing its commitment to unlocking long-term, local currency infrastructure financing in Nigeria, and creating sustainable value for its stakeholders.
“This equity raise involves InfraCredit’s formal transition to a Public Limited Company (Plc) and its listing by introduction on the NASD OTC Securities Exchange (“NASD”). These developments reflect InfraCredit’s continued efforts toward transparency, market development, and the attraction of long-term domestic capital for sustainable infrastructure.
“The equity raise of N27 billion ($17.7 million), comprising investment from MOBILIST and domestic institutional investors, will significantly strengthen InfraCredit’s guarantee issuing capacity, enabling greater support for creditworthy infrastructure projects. It will also result in the diversification of InfraCredit’s ownership structure in line with its envisioned capital structure. The NASD listing is expected to broaden investor participation, provide financial flexibility, enhance price discovery, and improved transparency for InfraCredit among a wider pool of institutional investors,” it said.
Commenting on this milestone, Chief Executive Officer of InfraCredit, Chinua Azubike, stated; “This moment marks the beginning of a new chapter for InfraCredit. 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. This reflects our ambition to build a deeper, more inclusive capital market for domestic resources that accelerates infrastructure delivery in Nigeria in line with our mission to unlock long-term local currency infrastructure finance.”
British Deputy High Commissioner in Lagos, Mr. Jonny Baxter,commented: “InfraCredit’s success highlights the power and impact of long-term partnerships, and the UK via the Foreign Commonwealth and Development Office (FCDO) is proud to have played a key role in not just the creation of InfraCredit but its continued growth. This transaction illustrates the potential of public markets to mobilise domestic capital at scale. 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 own market while ensuring that the local firms driving these projects can access the capital they need.”
Speaking on the Listing, Eguarekhide Longe, CEO, NASD commented; “NASD Plc and InfraCredit Plc have established a long-standing relationship initiated by the noting of the Multi-Issuer Clean Energy Bond series from 2022. The uniqueness of the Clean Energy Multi-Issuer Bond series underscores the transformational effect that InfraCredit has brought to the Nigerian Capital Market, providing guarantees as incentive to investors, mostly institutional, to participate in the infrastructure debt market. “
