InfraCredit builds capacity as infrastructure pipeline grows

Infrastructure Credit Guarantee Company Plc is strengthening its institutional capacity as its pipeline of infrastructure transactions grows, with the company securing a $50m subordinated unsecured 10-year debt facility from the International Finance Corporation.

A statement from the firm stated that the facility, which will be disbursed in two separate tranches of $25m each, is expected to strengthen InfraCredit’s capital structure and its ability to mobilise long-term domestic capital for infrastructure.

Commenting on the transaction, the Chief Executive Officer of InfraCredit, Chinua Azubike, said, “Building additional institutional capacity has been an important priority for InfraCredit as our transaction pipeline grows and our financing solutions evolve. IFC’s investment reinforces that capacity and strengthens our ability to mobilise long-term domestic capital for infrastructure.

“Equally important, this investment demonstrates the continued confidence of the international development finance community in InfraCredit’s business model. Our institution is supported by a diverse ecosystem of leading DFIs and development partners across multiple layers of our capital and risk-sharing structures, including subordinated debt, portfolio risk-sharing, counter-guarantees, first-loss capital and specialised investment facilities.

“That breadth of support is a significant competitive advantage and reflects the maturity and resilience of our institution. We look forward to building on this partnership with IFC as we work together to expand the flow of long-term capital into Nigeria’s infrastructure market.”

The facility will support infrastructure transactions across renewable energy, climate-smart agriculture, digital infrastructure and green growth, telecommunications, healthcare, transportation and other productive sectors of the Nigerian economy.

IFC’s Financial Institutions Group Director for Africa, Aliou Maiga, said, “This investment reflects IFC’s commitment to strengthening Nigeria’s infrastructure financing ecosystem and mobilizing long-term private capital.”

He added, “By supporting InfraCredit’s institutional capacity, we are helping mobilize domestic resources for infrastructure investments that can drive economic growth, job creation and sustainable development across key sectors of the Nigerian economy. We are pleased to deepen our partnership with InfraCredit as it continues to play a catalytic role in developing Nigeria’s local capital markets.”

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IFC’s investment is supported by the International Development Association Private Sector Window Blended Finance Facility and the Concessional Capital Window.

Since commencing operations in 2017, InfraCredit has facilitated over N600bn in long-term local currency financing across 28 infrastructure projects, while supporting 14 first-time issuers in accessing Nigeria’s domestic debt capital market.

InfraCredit-guaranteed transactions have contributed to several market milestones, including Nigeria’s first 15-year green infrastructure bond and the extension of corporate bond tenors to as long as 20 years.

Its guaranteed infrastructure bonds have consistently attracted participation from domestic institutional investors, including 20 of Nigeria’s 25 Pension Fund Administrators, with several transactions recording significant oversubscriptions.

The facility follows the expansion of InfraCredit’s domestic institutional shareholder base, its transition to a listed public company on the NASD OTC Securities Exchange, and the continued development of financing solutions that complement its core guarantee business while supporting infrastructure projects across different stages of the financing lifecycle.

The facility reinforces the complementary role of development finance institutions and domestic capital markets in expanding long-term local currency infrastructure finance.