IFC COMMITS $50M TO INFRACREDIT

The International Finance Corporation has committed $50m in long-term financing to Infrastructure Credit Guarantee Company Plc to strengthen infrastructure financing in Nigeria.

The 10-year unsecured subordinated debt facility was formalised in Lagos and will be provided in two equal tranches of $25m.

The financing is expected to strengthen InfraCredit’s capital base and increase its capacity to support infrastructure transactions while mobilising more long-term naira funding for projects across the country.

The targeted sectors include renewable energy, climate-smart agriculture, telecommunications, digital infrastructure, healthcare and transportation.

The IFC investment is supported by facilities under the International Development Association Private Sector Window and the Concessional Capital Window.

InfraCredit provides credit guarantees for infrastructure-related debt transactions and said the additional capital would help attract more domestic institutional investment into projects requiring long-term financing.

The company said the transaction would also support the development of new financing structures and co-financing platforms for infrastructure projects.

Since commencing operations in 2017, InfraCredit said it has facilitated more than N600bn in long-term local-currency financing for 28 infrastructure projects.

It has also supported 14 first-time issuers in accessing Nigeria’s domestic debt capital market.

The investment comes as development finance institutions continue to support efforts to deepen long-term infrastructure financing in Nigeria.