The International Finance Corporation (IFC) has committed $50 million in long-term financing to Infrastructure Credit Guarantee Company Plc (InfraCredit) to strengthen infrastructure financing in Nigeria.
The 10-year unsecured subordinated debt facility was formalised in Lagos and will be disbursed in two equal tranches of $25 million each. The funding is designed to strengthen InfraCredit’s capital base and increase its ability to support infrastructure transactions across the country.
The financing will support projects in several sectors, including renewable energy, climate-smart agriculture, telecommunications, digital infrastructure, healthcare and transportation.
InfraCredit provides credit guarantees that help infrastructure developers raise long-term financing from Nigeria’s domestic capital markets. By providing these guarantees, the company helps reduce some of the risks faced by institutional investors when financing infrastructure projects.
According to InfraCredit, the additional capital will enable it to expand its growing pipeline of infrastructure transactions and mobilise more long-term funding in naira. This is particularly relevant for projects whose revenues are largely generated in local currency.
The IFC investment is supported by the International Development Association Private Sector Window Blended Finance Facility and the Concessional Capital Window. The support forms part of broader development-finance efforts to increase private-sector participation in infrastructure development.
Since beginning operations in 2017, InfraCredit says it has facilitated more than ₦600 billion in long-term local-currency financing across 28 infrastructure projects. It has also supported 14 first-time issuers in accessing Nigeria’s domestic debt capital market.
The company has participated in transactions that helped introduce longer-term financing instruments to Nigeria’s capital market, including a 15-year green infrastructure bond. Some corporate bond transactions supported by InfraCredit have also reached maturities of up to 20 years.
IFC’s Financial Institutions Group Director for Africa, Aliou Maiga, said the investment would help mobilise domestic resources for infrastructure projects capable of supporting economic growth, job creation and sustainable development.
InfraCredit Chief Executive Officer Chinua Azubike said the facility would strengthen the company’s capacity as its transaction pipeline and financing solutions continue to expand.
The investment comes as Nigeria continues to seek greater private and institutional investment in infrastructure. Long-term financing remains important for projects such as power, transportation, healthcare and digital infrastructure because many of these investments require substantial capital and take years to generate returns.
The latest IFC facility therefore gives InfraCredit additional financial capacity to provide guarantees and help connect infrastructure developers with domestic institutional investors.
